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NV 85-1873463 12915 Old Virginia Road Reno NV 89521 (775) 622-3448 Common Stock, par value $0.0001 per share DFLI NASDAQ Redeemable Warrants, exercisable for common stock DFLIW NASDAQ Yes Yes Non-accelerated Filer true true false false 9363145 0.0001 2803000 4849000 4228000 2416000 21728000 21716000 932000 806000 2031000 1362000 311000 307000 644000 644000 771000 825000 33448000 32925000 16831000 16778000 419000 355000 8990000 9103000 33000 33000 26273000 26269000 5021000 4162000 21252000 22107000 19079000 19737000 445000 445000 74224000 75214000 13012000 10716000 4438000 4129000 1945000 1915000 750000 750000 137000 317000 1000000 1000000 55000 55000 2985000 2926000 48000 47000 24370000 21855000 3333000 3583000 2011000 5133000 1750000 1750000 33624000 29646000 21823000 22588000 51000 63000 62592000 62763000 86962000 84618000 5000 5000 0.0001 0.0001 320 320 0 0 2907000 4995000 5000000 0.0001 0.0001 0 0 0 0 250000000 250000000 0.0001 0.0001 7589642 7589642 7232650 7232650 1000 1000 73305000 72749000 -88951000 -82154000 -15645000 -9404000 74224000 75214000 13356000 12505000 9428000 9454000 3928000 3051000 1000000 1333000 6357000 4813000 2485000 2744000 9842000 8890000 -5914000 -5839000 4701000 4760000 4000 -3818000 -236000 -883000 -4528000 -6797000 -10367000 -6797000 -10367000 -0.93 -0.93 -1.55 -1.55 7327620 7327620 6695587 6695587 7232650 1000 72749000 -82154000 -9404000 -6797000 -6797000 23160 63000 63000 350 3180000 21945 -30 -273000 311887 273000 273000 220000 220000 320 2907000 7589642 1000 73305000 -88951000 -15645000 6695587 1000 69450000 -41539000 27912000 6695587 1000 69450000 -41539000 27912000 -10367000 -10367000 266000 266000 6695587 1000 69716000 -51906000 17811000 6695587 1000 69716000 -51906000 17811000 -6797000 -10367000 220000 266000 1095000 894000 -3818000 -236000 3579000 1260000 103000 47000 859000 332000 658000 422000 1915000 655000 12000 -5200000 126000 71000 669000 87000 -54000 591000 -4000 174000 3379000 81000 -717000 -181000 30000 87000 -250000 -180000 30000 2286000 6972000 -4511000 -3395000 778000 817000 -778000 -817000 63000 3180000 2700000 2700000 3243000 -2046000 -4212000 4849000 12713000 2803000 8501000 2000 1000 2390000 929000 412000 21095000 696000 273000 <p id="xdx_80F_eus-gaap--NatureOfOperations_z57d9v51Of3a" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 1 - <span id="xdx_827_z60SkiVjQfci">NATURE OF BUSINESS</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">Dragonfly Energy Holdings Corp. (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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p id="xdx_80B_eus-gaap--SignificantAccountingPoliciesTextBlock_zNewXvWxLzI2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 2 – <span id="xdx_829_z1ukAm3uKRi">SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p id="xdx_841_eus-gaap--ConsolidationPolicyTextBlock_zhX8GNgXq4cg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"><i><span style="text-decoration: underline"><span id="xdx_869_zuajKcxZAiqb">Principles of consolidation</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">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 subsidiary, Dragonfly Energy Corp. All significant intercompany transactions and balances are eliminated in consolidation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p id="xdx_84B_eus-gaap--BasisOfAccountingPolicyPolicyTextBlock_zEUsNy6HuxIi" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt"><i><span style="text-decoration: underline"><span id="xdx_862_ztXrFatM6Yyg">Basis of presentation</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">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 Form 10-K filed with the SEC on March 31, 2025 of the Company for the annual period ended December 31, 2024. The consolidated balance sheet as of December 31, 2024 was derived from the audited consolidated financial statements as of and for the year then ended.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p> <p id="xdx_847_ecustom--GoingConcernPolicyTextBlock_zvMuRLyigt2a" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt"><i><span style="text-decoration: underline"><span id="xdx_86A_zs3X6LqNGg93">Going Concern</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"><b>DRAGONFLY ENERGY HOLDINGS CORP.</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 2 – Summary of Significant Accounting Policies (continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt"><i><span style="text-decoration: underline">Going Concern (Continued)</span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">During the three months ended March 31, 2025 and 2024, the Company incurred losses from operations and had negative cash flow from operations. As of March 31, 2025, the Company had $<span id="xdx_906_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iI_pn3n3_c20250331_zqBxfFtswfjh">2,803</span> in cash and cash equivalents and a working capital of $<span id="xdx_903_ecustom--WorkingCapital_pn3n3_c20250101__20250331_zFkjLbHDeFM7">9,078</span>. 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 $<span id="xdx_90B_eus-gaap--DebtInstrumentFaceAmount_iI_pn3n3_c20250331__us-gaap--CreditFacilityAxis__custom--SeniorSecuredTermLoanFacilityMember__us-gaap--LongtermDebtTypeAxis__custom--TermLoanMember_zGxWbQVhrsfb">75,000 </span>(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 <b>(See Note 6).</b> Between March 2024 and February 2025, the Company obtained multiple waivers from the Term Loan administrative agent and lenders, or the Term Loan Lenders, for noncompliance with the liquidity requirements under the Term Loan.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">On February 26, 2025, the Company entered into a Securities Purchase agreement (“Purchase Agreement”). The Purchase Agreement calls for the Company to authorize a new series of convertible preferred stock of the Company designated as the Series A Preferred Stock (as defined below), which shall be convertible into shares of the Company’s common stock, and sell to each buyer an aggregate number of shares of Series A Preferred Stock and 20 warrants, to each buyer, that are convertible to common stock.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">Total proceeds amount to $<span id="xdx_908_ecustom--ProceedsFromWorkingCapital_pn3n3_c20250201__20250228_zlTCxC08Rask" title="Proceeds from working capital">8,000</span> which the Company will use for working capital, general corporate purposes and mandatory payments on the Term Loan if more than $<span id="xdx_903_eus-gaap--LoansPayable_iI_pn3n3_c20250228_zSYHsseeYacj" title="Term loan">8,000</span> is raised. As of March 31, 2025, <span id="xdx_90F_ecustom--ExpectedCostReceivedDescription_c20250331__20250331_zZGzomLKEHI2" title="Expected cost received, description">the Company received $3,500 of the $8,000 less $300 in costs</span>. In addition, investors received warrants to purchase up to <span id="xdx_90F_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_pid_c20250331__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zLMAVSGfTn17" title="Warrants">4,000</span> shares of Series A Preferred Stock at $<span id="xdx_909_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20250331__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zD81I4uz1zZj" title="Warrants, per share">10,000</span> per share, potentially providing up to $<span id="xdx_90B_eus-gaap--WarrantsAndRightsOutstanding_iI_pn6n6_c20250331__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_z880tfnbTBSc" title="Warrants, future capital">40</span> million in future capital.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">In addition to the Purchase Agreement, the Term Loan was amended to (i) extend the maturity date by one (1) year to October 2027, (ii) defer all principal and interest payments to April 2026 and (iii) remove any applicable financial covenants (except for a financial covenant requiring the Company to maintain cash and cash equivalents equal to or greater than $<span id="xdx_902_eus-gaap--Cash_iI_pn3n3_c20250331_zDRSJSIA95Ik" title="Cash">2,500</span>) through June 30, 2026.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">As presented above, strategic initiatives were executed in order to alleviate the substantial doubt, such as the Company’s ability to raise funds through the Purchase Agreement, the maturity extension of the Term Loan, and the absence of any covenants, other than a $<span id="xdx_909_eus-gaap--Cash_iI_pn3n3_c20250331_zXYEbV0yVEI6" title="Cash">2,500</span> minimum cash requirement, for at least one year from the financial statement issuance date. However, the initiatives were not enough support to completely alleviate the Company’s going concern. Due to no other concessions being made by the lenders in terms of future debt and interest due, except for extending payments into 2026 and the maturity date by one year, and due to the inherent uncertainty surrounding the realization of projected revenues from new markets, management concluded that there is significant doubt about the Company’s ability to continue as a going concern.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">In addition, the Company may need to raise additional debt and/or equity financings to funds 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"><b>DRAGONFLY ENERGY HOLDINGS CORP.</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 2 – Summary of Significant Accounting Policies (continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt"> </p> <p id="xdx_840_eus-gaap--CashAndCashEquivalentsPolicyTextBlock_zENeleKbsVhl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"><i><span style="text-decoration: underline"><span id="xdx_866_zT3Sa5I0Y0gj">Cash and Cash Equivalents</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">The Company considers all short-term debt securities purchased with a maturity of three months or less to be cash equivalents. As of March 31, 2025 and December 31, 2024, the Company held <span id="xdx_906_eus-gaap--CashEquivalentsAtCarryingValue_iI_do_c20250331_z16eJ2oshNTa" title="Cash equivalents"><span id="xdx_906_eus-gaap--CashEquivalentsAtCarryingValue_iI_do_c20241231_z6u1Zr3IBwAg" title="Cash equivalents">no</span></span> Cash Equivalents.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p id="xdx_84A_eus-gaap--TradeAndOtherAccountsReceivablePolicy_zoCPgGsh8gka" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"><i><span style="text-decoration: underline"><span id="xdx_866_zMxluXETqik">Accounts Receivable</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">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 March 31, 2025 and December 31, 2024 were not material.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p id="xdx_841_eus-gaap--InventoryPolicyTextBlock_zGioABOvezv9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt"><i><span style="text-decoration: underline"><span id="xdx_86A_z7NoChJXzcBf">Inventory</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">Inventories <b>(Note 4)</b>, 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 Company had a reserve of $<span id="xdx_908_eus-gaap--InventoryValuationReserves_iI_pn3n3_c20250331_zdfEfcJysoQ9" title="Inventory valuation reserves">260</span> and $<span id="xdx_900_eus-gaap--InventoryValuationReserves_iI_pn3n3_c20241231_zVcWwWkPn9C4" title="Inventory valuation reserves">188</span> as of March 31, 2025 and December 31, 2024, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p id="xdx_842_ecustom--AssetsHeldForSalePolicyTextBlock_zMZ6ng9lVS9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"><span id="xdx_86F_zGGGjFsJsrC7"><i><span style="text-decoration: underline">Assets Held for Sale</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">Assets held for sale are valued at the lower of the carrying amount or the net realizable value estimated at March 31, 2025. Impairment to carrying amounts are recognized to non-operating expenses in the year ending December 31, 2024. The Assets held for sale, or the disposal group, consists of two research and development pieces of equipment that were not in use yet. Due to the nature of the disposal group being long-lived assets, the disposal group qualifies for the held for sale classification, as defined in ASC 360. Due to the Company shifting its focus from research and development efforts to product development, these assets would be put into service at an undeterminable time in the future and therefore, a search for a potential buyer was conducted. The Company plans to complete the sale in the second quarter of 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p id="xdx_84C_eus-gaap--UseOfEstimates_zATlZqAV1gTc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt"><i><span style="text-decoration: underline"><span id="xdx_862_zl5zxOJtKAO4">Use of Estimates</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">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, going concern, right of use asset, warrant liability, equity based compensation, income taxes, leases and license arrangement.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>DRAGONFLY ENERGY HOLDINGS CORP.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 2 – Summary of Significant Accounting Policies (continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p id="xdx_846_eus-gaap--RevenueFromContractWithCustomerPolicyTextBlock_z6jjzhwYhPA5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"><i><span style="text-decoration: underline"><span id="xdx_865_zrs9lVbhqDOd">Revenue Recognition</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">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, the Company’s 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">The Company recognizes revenue from right-to-access license agreements upon the transfer of control to the customer. Upfront fees are deferred and recognized over the estimated period of benefit. Royalties are recognized as revenue when the customer’s underlying sales occur. The transaction price and timing of revenue recognition are adjusted as necessary to reflect changes in expectations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">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 original equipment manufacturers (“OEMs”) are typically due within <span id="xdx_903_ecustom--PaymentTermForDistributorsAndOriginalEquipmentManufacturers_dtD_c20250101__20250331__srt--RangeAxis__srt--MinimumMember_zZfeND7rskp7" title="Payment term for distributors and OEMs">30</span>-<span id="xdx_905_ecustom--PaymentTermForDistributorsAndOriginalEquipmentManufacturers_dtD_c20250101__20250331__srt--RangeAxis__srt--MaximumMember_zWRAMTPHzRY7" title="Payment term for distributors and OEMs">90</span> 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 March 31, 2025 and December 31, 2024, the contract liability related to the Company’s customer deposits were approximately $<span id="xdx_903_eus-gaap--ContractWithCustomerLiabilityCurrent_iI_pn3n3_c20250331_zP8D9kmiv7sd" title="Customer deposits">137</span> and $<span id="xdx_90D_eus-gaap--ContractWithCustomerLiabilityCurrent_iI_pn3n3_c20241231_zpi3jk8Xhqq7" title="Customer deposits">317</span>, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">The Company recognized $<span id="xdx_90D_eus-gaap--ContractWithCustomerLiabilityRevenueRecognized_pn3n3_c20250101__20250331_zEQu0KvuFw48" title="Contract liability recognized">306</span> of the contract liability as of December 31, 2024 during the three months ended March 31, 2025. During the three months ended March 31, 2024, the Company recognized $<span id="xdx_900_eus-gaap--ContractWithCustomerLiabilityRevenueRecognized_pn3n3_c20240101__20240331_zyHk6wFI4b6e" title="Contract liability recognized">134</span> of the contract liability that was recorded as a January 1, 2024 beginning balance.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">On July 29, 2024, Dragonfly Energy Corp. (“Legacy Dragonfly”), one of the wholly-owned subsidiaries 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”) (<b>Note 7</b>). The $<span id="xdx_900_ecustom--LicensingFee_pn3n3_c20240729__20240729__us-gaap--TypeOfArrangementAxis__custom--LicenseAgreementMember_zcVtJsxpIVyg" title="Licensing fee">5,000</span> initial licensing fee is being recognized as revenue on a straight-line basis over five<span id="xdx_900_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20240729__us-gaap--TypeOfArrangementAxis__custom--LicenseAgreementMember_zt0b0qAOsq06" style="display: none" title="Estimated useful life">5</span> years. The Company has recorded $<span id="xdx_903_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250101__20250331__us-gaap--TypeOfArrangementAxis__custom--LicenseAgreementMember_zNOlic7RCTOb" title="Revenue">250</span> in revenue related to the License Agreement for the three months ended March 31, 2025. As of March 31, 2025 and December 31, 2024, the contract liability related to the Company’s deferred revenue were approximately $<span id="xdx_90F_eus-gaap--DeferredRevenue_iI_pn3n3_c20250331__us-gaap--TypeOfArrangementAxis__custom--LicenseAgreementMember_zCDNR7vLHkwi" title="Deferred revenue">4,333</span> and $<span id="xdx_90A_eus-gaap--DeferredRevenue_iI_pn3n3_c20241231__us-gaap--TypeOfArrangementAxis__custom--LicenseAgreementMember_zBHmYMNSSb4" title="Deferred revenue">4,583</span>, respectively. As of March 31, 2025, the Company had $<span id="xdx_905_eus-gaap--DeferredIncomeCurrent_iI_pn3n3_c20250331__us-gaap--TypeOfArrangementAxis__custom--LicenseAgreementMember_zyGsvJouRl56" title="Short term deferred revenue">1,000</span> in short term deferred revenue and $<span id="xdx_901_eus-gaap--DeferredIncomeNoncurrent_iI_pn3n3_c20250331__us-gaap--TypeOfArrangementAxis__custom--LicenseAgreementMember_z5JQszlRnYmg" title="Long term deferred revenue">3,333</span> in long-term deferred revenue related to the License Agreement.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 2 – Summary of Significant Accounting Policies (continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p id="xdx_846_ecustom--DisaggregationOfRevenuePolicyTextBlock_zwz5IUJsd886" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration: underline"><span id="xdx_86B_zOyJikHgVNgc">Disaggregation of Revenue</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_896_eus-gaap--DisaggregationOfRevenueTableTextBlock_zuSxeAWQIOpe" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table present the Company’s disaggregated revenues by distribution channel:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span><span id="xdx_8B1_zbmJmrryfi81">SCHEDULE OF DISAGGREGATED REVENUES BY DISTRIBUTION CHANNEL</span></span> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%; margin-left: 0.5in"> <tr style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 9pt"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_496_20250101__20250331_z3Uo9Es0R3R3" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_49C_20240101__20240331_zFCvUrjf1Cvb" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="6" style="text-align: center">For the Three Months Ended</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">March 31,</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid">Sales</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2025</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2024</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_404_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_hus-gaap--ContractWithCustomerSalesChannelAxis__us-gaap--SalesChannelDirectlyToConsumerMember_znzyQKJMSiq2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left; padding-left: 9pt">Direct to customer</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">5,015</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">5,203</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_hus-gaap--ContractWithCustomerSalesChannelAxis__custom--OriginalEquipmentManufacturersMember_zCtAd9MgR7L1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 9pt">Original equipment manufacture</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,091</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,302</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_hus-gaap--ContractWithCustomerSalesChannelAxis__custom--LicenseFeeRevenueMember_zfkmQs5H5NG7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 9pt">License fee revenue</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">250</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0650">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_zC02BkhGwgY2" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; padding-left: 0.25in">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">13,356</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">12,505</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A3_z0ypXn7vz6Y9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">  </p> <p id="xdx_849_eus-gaap--StandardProductWarrantyPolicy_zeh8JkRc1fMd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i><span style="text-decoration: underline"><span id="xdx_862_z1a5jykp5Twf">Product Warranty</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company offers assurance type warranties from <span id="xdx_90C_ecustom--ProductWarrantyTermProvided_dtY_c20250101__20250331__srt--RangeAxis__srt--MinimumMember_zB9668Q30z11" title="Term of product warranty provided">5</span> to <span id="xdx_900_ecustom--ProductWarrantyTermProvided_dtY_c20250101__20250331__srt--RangeAxis__srt--MaximumMember_zDeMl7hOJO3a" title="Term of product warranty provided">10</span> 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 the Company’s 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 its 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 March 31, 2025 and December 31, 2024 to be $<span id="xdx_90A_eus-gaap--ProductWarrantyAccrual_iI_pn3n3_c20250331_zmdNw41R0Jwa" title="Warranty obilgation outstanding">588</span> and $<span id="xdx_907_eus-gaap--ProductWarrantyAccrual_iI_pn3n3_c20241231_zHleoSVugzl9" title="Warranty obilgation outstanding">514</span>, respectively. The Company incurred warranty expense of $<span id="xdx_90C_eus-gaap--ProductWarrantyAccrualWarrantiesIssued_pn3n3_c20250101__20250331_zfzwFwFSLBzf" title="Warranty expense">123</span> and $<span id="xdx_905_eus-gaap--ProductWarrantyAccrualWarrantiesIssued_pn3n3_c20240101__20240331_zerqsX9X5WF7" title="Warranty expense">541</span> for the three months ended March 31, 2025 and 2024, respectively.</p> <p id="xdx_89A_eus-gaap--ScheduleOfProductWarrantyLiabilityTableTextBlock_zmQKYv1DGJak" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="display: none"><span id="xdx_8B0_zRomh10hUsQe">SCHEDULE OF WARRANTY OBLIGATION</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td style="padding-left: 0pt"> </td><td> </td> <td colspan="2" id="xdx_491_20250101__20250331_zJFHSX6jKKLg" style="text-align: center">March 31,</td><td> </td> </tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2025</td><td style="padding-bottom: 1pt"> </td> </tr> <tr id="xdx_409_eus-gaap--ProductWarrantyAccrual_iS_pn3n3_z7xmHGWLOKz5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 78%; text-align: left; padding-left: 0pt">Beginning warranty obligation</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 18%; text-align: right">514</td><td style="width: 1%; text-align: left"> </td> </tr> <tr id="xdx_40A_eus-gaap--ProductWarrantyAccrualWarrantiesIssued_pn3n3_zwWUo7fFFFyg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 0pt">Provision of warranty expense</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">123</td><td style="text-align: left"> </td> </tr> <tr id="xdx_409_eus-gaap--ProductWarrantyAccrualPayments_iN_pn3n3_di_zEEcFW4Dg9x" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 0pt">Settlement of warranty claims</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(49</td><td style="padding-bottom: 1pt; text-align: left">)</td> </tr> <tr id="xdx_401_eus-gaap--ProductWarrantyAccrual_iE_pn3n3_zf0KzJoMUJCj" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; padding-left: 0.125in">Ending warranty obligation</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">588</td><td style="padding-bottom: 2.5pt; text-align: left"> </td> </tr> </table> <p id="xdx_8A5_z6r1aK3RfBui" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_84D_eus-gaap--ConcentrationRiskCreditRisk_zBTfX7DU3Y3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration: underline"><span id="xdx_861_zZc0RFnpAl88">Concentrations</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2025, receivables from Customer A comprised approximately <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20250101__20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerAMember_zhnrC7zNK3eh" title="Concentration risk, percentage">31</span>% of accounts receivable. As of December 31, 2024, receivables from Customer A and B comprised approximately <span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerAMember_z8s4DSCdQ44g" title="Concentration risk, percentage">15</span>% and <span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerBMember_z3HpU2G5OQJh" title="Concentration risk, percentage">21</span>%, respectively, of accounts receivable. There are no other significant accounts receivable concentration.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the three months ended March 31, 2025, sales from Customer A comprised approximately <span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20250101__20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--RevenueFromContractWithCustomerMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerAMember_zgCERYJ9x8Wi" title="Concentration risk, percentage">18</span>% of the Company’s total revenue. For the three months ended March 31, 2024, sales from Customer A comprised approximately <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20240101__20240331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--RevenueFromContractWithCustomerMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerAMember_zAHcMHQqwH71" title="Concentration risk, percentage">16</span>% of the Company’s total revenue.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 2 – Summary of Significant Accounting Policies (continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><i><span style="text-decoration: underline">Concentrations (Continued)</span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">As of March 31, 2025, payables to Vendor A and Vendor C comprised approximately <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20250101__20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--VendorAMember_zpR6dgtn0Qg4" title="Concentration risk, percentage">27</span>% and <span id="xdx_900_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20250101__20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--VendorCMember_ze1tgl2RXym2" title="Concentration risk, percentage">18</span>%, respectively, of accounts payables. As of December 31, 2024, payables to Vendor A, Vendor B, and Vendor C comprised approximately <span id="xdx_905_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--VendorAMember_zWp3NSF4m5sl" title="Concentration risk, percentage">33</span>%, <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--VendorBMember_zSeArTERUIG9" title="Concentration risk, percentage">11</span>%, and <span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--VendorCMember_zOkIz6vSToZk" title="Concentration risk, percentage">12</span>%, respectively, of accounts payables.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">For the three months ended March 31, 2025, Vendor A accounted for approximately <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20250101__20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--TotalPurchasesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--VendorAMember_zBMgHaCrwXGg" title="Concentration risk, percentage">21</span>% of the Company’s total purchases. For the three months ended March 31, 2024, Vendor B accounted for approximately <span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20240101__20240331__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--TotalPurchasesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--VendorBMember_zRRL9Sct02tc" title="Concentration risk, percentage">12</span>% of the Company’s total purchases.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p id="xdx_84F_eus-gaap--ShareBasedCompensationOptionAndIncentivePlansPolicy_zzeDM0PJ2xkb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><i><span style="text-decoration: underline"><span id="xdx_865_zeKATbY87Q02">Stock-Based Compensation</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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 (<b>Note 12</b>). 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 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-variant: small-caps; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 2 – Summary of Significant Accounting Policies (continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p id="xdx_843_eus-gaap--IncomeTaxPolicyTextBlock_zLFuDIwHSm05" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><i><span style="text-decoration: underline"><span id="xdx_867_zz0FxQAw9sF6">Income Taxes</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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 $<span id="xdx_909_eus-gaap--UnrecognizedTaxBenefits_iI_pn3n3_c20241231_zDeRTymfZUMe" title="Uncertain tax positions"><span id="xdx_905_eus-gaap--UnrecognizedTaxBenefits_iI_pn3n3_c20250331_zCOj6Hmn9F58" title="Uncertain tax positions">55</span></span> and $<span id="xdx_906_eus-gaap--UnrecognizedTaxBenefits_iI_pn3n3_c20241231_zWBGkbP9JsH1" title="Uncertain tax positions">55</span> as of March 31, 2025 and December 31, 2024, respectively, of uncertain tax positions.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p id="xdx_84B_eus-gaap--EarningsPerSharePolicyTextBlock_z1qOOvCaQjoc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><i><span style="text-decoration: underline"><span id="xdx_865_zmOzgLxN3GL3">Net Loss per Common Share</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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 earnings 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p id="xdx_89D_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_zyCGoM8HZd9l" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0pt 0pt 0">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:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span style="display: none"><span id="xdx_8B8_zhRHDpH8860j">SCHEDULE OF POTENTIAL SHARES OF COMMON STOCK EXCLUDED FROM DILUTED NET LOSS PER SHARE</span></span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_493_20250101__20250331_zZMkOZgXVgf3" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_493_20240101__20240331_zBtCpUYZHbVa" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">March 31,</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2025</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2024</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_401_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zlDmsh05addj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Warrants</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">52,256,156</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">2,723,400</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--RestrictedStockUnitsRSUMember_zIvxyA5S706f" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Restricted stock units</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">323,591</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">18,013</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--SeriesAPreferredStockMember_zQ6Mtp5seQ7c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Series A Preferred Stock </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,840,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0726">-</span></td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zFRC1XYBZdD1" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Options</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">161,939</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">257,255</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_z9bREfA2PwGc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Weighted average number of common shares - basic</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">56,581,686</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">2,998,668</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8AD_zxeYxoKP0618" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p id="xdx_842_eus-gaap--LesseeLeasesPolicyTextBlock_zYZpVqGR758g" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><i><span style="text-decoration: underline"><span id="xdx_86E_zWhQPAdLXlU6">Leases</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp. </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 2 – Summary of Significant Accounting Policies (continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0pt 0pt 0"> </p> <p id="xdx_840_eus-gaap--DerivativesPolicyTextBlock_zPUy7tMROp6g" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><span style="text-decoration: underline"><span id="xdx_867_zGb3XMhLl5z8">Derivative Accounting</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company evaluates its financial instruments, including preferred stock and warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives pursuant to ASC 815, Derivatives and Hedging. Warrants are assessed for classification as either equity or liabilities based on their specific terms and applicable accounting guidance. Equity-classified warrants are recorded within additional paid-in capital at their grant date fair value and are not subsequently remeasured, while liability-classified warrants are recorded at fair value on the issuance date and remeasured at each reporting period, with changes in fair value recognized in earnings. Preferred stock is evaluated to determine whether it should be classified as a liability, equity, or within mezzanine (temporary) equity. This assessment considers the presence of redemption features not solely within the Company’s control or if redemption is deemed probable. Preferred stock classified as mezzanine equity is presented between liabilities and equity on the consolidated balance sheets, with changes to the redemption value accounted for in accordance with ASC 480, Distinguishing Liabilities from Equity. If preferred stock contains embedded derivatives that are not clearly and closely related to the host instrument, such derivatives are bifurcated and measured at fair value, with changes recorded in earnings. Fair value is determined using appropriate valuation techniques, such as the Black-Scholes option pricing model or discounted cash flow analysis, considering the terms of the financial instruments and prevailing market conditions at the reporting date.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_844_eus-gaap--SegmentReportingPolicyPolicyTextBlock_zSB4F6Un1Xe5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><i><span style="text-decoration: underline"><span id="xdx_866_zKMnxnVaxHIe">Segment Reporting</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">Operating segments are identified (<b>Note 14</b>) 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. Previously, the Company recognized one operating segment. Historically, the Company reported a single operating and reportable segment, as management evaluated the business on a consolidated basis. During the fourth quarter of 2024, the Company reassessed its internal reporting structure and how management monitors operations and makes decisions. As a result of this reassessment, the Company determined that it now manages its business through two distinct operating segments. This change was driven by the development of the Company’s operations and internal decision-making processes, including the introduction of separate performance metrics and discrete financial information for each segment.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p id="xdx_84A_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_z9aKVo91bUwi" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><i><span style="text-decoration: underline"><span id="xdx_866_zyA6nZfxfuEj">Recently issued accounting pronouncements</span></span>:</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><i><span style="text-decoration: underline"> </span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0pt 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires a public entity to disclose additional information about specific expense categories in the notes to the financial statements on an annual and interim basis. It is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. In January 2025, the FASB issued ASU 2025-01 to clarify that all public entities, including non-calendar year-end entities, should adopt the disclosure requirements of ASU 2024-03. The Company is currently evaluating the impact.</p> <p id="xdx_859_zYvrOV3Yvyx6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p id="xdx_841_eus-gaap--ConsolidationPolicyTextBlock_zhX8GNgXq4cg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"><i><span style="text-decoration: underline"><span id="xdx_869_zuajKcxZAiqb">Principles of consolidation</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">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 subsidiary, Dragonfly Energy Corp. All significant intercompany transactions and balances are eliminated in consolidation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p id="xdx_84B_eus-gaap--BasisOfAccountingPolicyPolicyTextBlock_zEUsNy6HuxIi" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt"><i><span style="text-decoration: underline"><span id="xdx_862_ztXrFatM6Yyg">Basis of presentation</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">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 Form 10-K filed with the SEC on March 31, 2025 of the Company for the annual period ended December 31, 2024. The consolidated balance sheet as of December 31, 2024 was derived from the audited consolidated financial statements as of and for the year then ended.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p> <p id="xdx_847_ecustom--GoingConcernPolicyTextBlock_zvMuRLyigt2a" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt"><i><span style="text-decoration: underline"><span id="xdx_86A_zs3X6LqNGg93">Going Concern</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"><b>DRAGONFLY ENERGY HOLDINGS CORP.</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 2 – Summary of Significant Accounting Policies (continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt"><i><span style="text-decoration: underline">Going Concern (Continued)</span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">During the three months ended March 31, 2025 and 2024, the Company incurred losses from operations and had negative cash flow from operations. As of March 31, 2025, the Company had $<span id="xdx_906_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iI_pn3n3_c20250331_zqBxfFtswfjh">2,803</span> in cash and cash equivalents and a working capital of $<span id="xdx_903_ecustom--WorkingCapital_pn3n3_c20250101__20250331_zFkjLbHDeFM7">9,078</span>. 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 $<span id="xdx_90B_eus-gaap--DebtInstrumentFaceAmount_iI_pn3n3_c20250331__us-gaap--CreditFacilityAxis__custom--SeniorSecuredTermLoanFacilityMember__us-gaap--LongtermDebtTypeAxis__custom--TermLoanMember_zGxWbQVhrsfb">75,000 </span>(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 <b>(See Note 6).</b> Between March 2024 and February 2025, the Company obtained multiple waivers from the Term Loan administrative agent and lenders, or the Term Loan Lenders, for noncompliance with the liquidity requirements under the Term Loan.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">On February 26, 2025, the Company entered into a Securities Purchase agreement (“Purchase Agreement”). The Purchase Agreement calls for the Company to authorize a new series of convertible preferred stock of the Company designated as the Series A Preferred Stock (as defined below), which shall be convertible into shares of the Company’s common stock, and sell to each buyer an aggregate number of shares of Series A Preferred Stock and 20 warrants, to each buyer, that are convertible to common stock.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">Total proceeds amount to $<span id="xdx_908_ecustom--ProceedsFromWorkingCapital_pn3n3_c20250201__20250228_zlTCxC08Rask" title="Proceeds from working capital">8,000</span> which the Company will use for working capital, general corporate purposes and mandatory payments on the Term Loan if more than $<span id="xdx_903_eus-gaap--LoansPayable_iI_pn3n3_c20250228_zSYHsseeYacj" title="Term loan">8,000</span> is raised. As of March 31, 2025, <span id="xdx_90F_ecustom--ExpectedCostReceivedDescription_c20250331__20250331_zZGzomLKEHI2" title="Expected cost received, description">the Company received $3,500 of the $8,000 less $300 in costs</span>. In addition, investors received warrants to purchase up to <span id="xdx_90F_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_pid_c20250331__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zLMAVSGfTn17" title="Warrants">4,000</span> shares of Series A Preferred Stock at $<span id="xdx_909_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20250331__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zD81I4uz1zZj" title="Warrants, per share">10,000</span> per share, potentially providing up to $<span id="xdx_90B_eus-gaap--WarrantsAndRightsOutstanding_iI_pn6n6_c20250331__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_z880tfnbTBSc" title="Warrants, future capital">40</span> million in future capital.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">In addition to the Purchase Agreement, the Term Loan was amended to (i) extend the maturity date by one (1) year to October 2027, (ii) defer all principal and interest payments to April 2026 and (iii) remove any applicable financial covenants (except for a financial covenant requiring the Company to maintain cash and cash equivalents equal to or greater than $<span id="xdx_902_eus-gaap--Cash_iI_pn3n3_c20250331_zDRSJSIA95Ik" title="Cash">2,500</span>) through June 30, 2026.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">As presented above, strategic initiatives were executed in order to alleviate the substantial doubt, such as the Company’s ability to raise funds through the Purchase Agreement, the maturity extension of the Term Loan, and the absence of any covenants, other than a $<span id="xdx_909_eus-gaap--Cash_iI_pn3n3_c20250331_zXYEbV0yVEI6" title="Cash">2,500</span> minimum cash requirement, for at least one year from the financial statement issuance date. However, the initiatives were not enough support to completely alleviate the Company’s going concern. Due to no other concessions being made by the lenders in terms of future debt and interest due, except for extending payments into 2026 and the maturity date by one year, and due to the inherent uncertainty surrounding the realization of projected revenues from new markets, management concluded that there is significant doubt about the Company’s ability to continue as a going concern.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">In addition, the Company may need to raise additional debt and/or equity financings to funds 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"><b>DRAGONFLY ENERGY HOLDINGS CORP.</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 2 – Summary of Significant Accounting Policies (continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt"> </p> 2803000 9078000 75000000 8000000 8000000 the Company received $3,500 of the $8,000 less $300 in costs 4000 10000 40000000 2500000 2500000 <p id="xdx_840_eus-gaap--CashAndCashEquivalentsPolicyTextBlock_zENeleKbsVhl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"><i><span style="text-decoration: underline"><span id="xdx_866_zT3Sa5I0Y0gj">Cash and Cash Equivalents</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">The Company considers all short-term debt securities purchased with a maturity of three months or less to be cash equivalents. As of March 31, 2025 and December 31, 2024, the Company held <span id="xdx_906_eus-gaap--CashEquivalentsAtCarryingValue_iI_do_c20250331_z16eJ2oshNTa" title="Cash equivalents"><span id="xdx_906_eus-gaap--CashEquivalentsAtCarryingValue_iI_do_c20241231_z6u1Zr3IBwAg" title="Cash equivalents">no</span></span> Cash Equivalents.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> 0 0 <p id="xdx_84A_eus-gaap--TradeAndOtherAccountsReceivablePolicy_zoCPgGsh8gka" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"><i><span style="text-decoration: underline"><span id="xdx_866_zMxluXETqik">Accounts Receivable</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">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 March 31, 2025 and December 31, 2024 were not material.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p id="xdx_841_eus-gaap--InventoryPolicyTextBlock_zGioABOvezv9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt"><i><span style="text-decoration: underline"><span id="xdx_86A_z7NoChJXzcBf">Inventory</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">Inventories <b>(Note 4)</b>, 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 Company had a reserve of $<span id="xdx_908_eus-gaap--InventoryValuationReserves_iI_pn3n3_c20250331_zdfEfcJysoQ9" title="Inventory valuation reserves">260</span> and $<span id="xdx_900_eus-gaap--InventoryValuationReserves_iI_pn3n3_c20241231_zVcWwWkPn9C4" title="Inventory valuation reserves">188</span> as of March 31, 2025 and December 31, 2024, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> 260000 188000 <p id="xdx_842_ecustom--AssetsHeldForSalePolicyTextBlock_zMZ6ng9lVS9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"><span id="xdx_86F_zGGGjFsJsrC7"><i><span style="text-decoration: underline">Assets Held for Sale</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">Assets held for sale are valued at the lower of the carrying amount or the net realizable value estimated at March 31, 2025. Impairment to carrying amounts are recognized to non-operating expenses in the year ending December 31, 2024. The Assets held for sale, or the disposal group, consists of two research and development pieces of equipment that were not in use yet. Due to the nature of the disposal group being long-lived assets, the disposal group qualifies for the held for sale classification, as defined in ASC 360. Due to the Company shifting its focus from research and development efforts to product development, these assets would be put into service at an undeterminable time in the future and therefore, a search for a potential buyer was conducted. The Company plans to complete the sale in the second quarter of 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p id="xdx_84C_eus-gaap--UseOfEstimates_zATlZqAV1gTc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt"><i><span style="text-decoration: underline"><span id="xdx_862_zl5zxOJtKAO4">Use of Estimates</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">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, going concern, right of use asset, warrant liability, equity based compensation, income taxes, leases and license arrangement.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>DRAGONFLY ENERGY HOLDINGS CORP.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 2 – Summary of Significant Accounting Policies (continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p id="xdx_846_eus-gaap--RevenueFromContractWithCustomerPolicyTextBlock_z6jjzhwYhPA5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"><i><span style="text-decoration: underline"><span id="xdx_865_zrs9lVbhqDOd">Revenue Recognition</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">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, the Company’s 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">The Company recognizes revenue from right-to-access license agreements upon the transfer of control to the customer. Upfront fees are deferred and recognized over the estimated period of benefit. Royalties are recognized as revenue when the customer’s underlying sales occur. The transaction price and timing of revenue recognition are adjusted as necessary to reflect changes in expectations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">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 original equipment manufacturers (“OEMs”) are typically due within <span id="xdx_903_ecustom--PaymentTermForDistributorsAndOriginalEquipmentManufacturers_dtD_c20250101__20250331__srt--RangeAxis__srt--MinimumMember_zZfeND7rskp7" title="Payment term for distributors and OEMs">30</span>-<span id="xdx_905_ecustom--PaymentTermForDistributorsAndOriginalEquipmentManufacturers_dtD_c20250101__20250331__srt--RangeAxis__srt--MaximumMember_zWRAMTPHzRY7" title="Payment term for distributors and OEMs">90</span> 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 March 31, 2025 and December 31, 2024, the contract liability related to the Company’s customer deposits were approximately $<span id="xdx_903_eus-gaap--ContractWithCustomerLiabilityCurrent_iI_pn3n3_c20250331_zP8D9kmiv7sd" title="Customer deposits">137</span> and $<span id="xdx_90D_eus-gaap--ContractWithCustomerLiabilityCurrent_iI_pn3n3_c20241231_zpi3jk8Xhqq7" title="Customer deposits">317</span>, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">The Company recognized $<span id="xdx_90D_eus-gaap--ContractWithCustomerLiabilityRevenueRecognized_pn3n3_c20250101__20250331_zEQu0KvuFw48" title="Contract liability recognized">306</span> of the contract liability as of December 31, 2024 during the three months ended March 31, 2025. During the three months ended March 31, 2024, the Company recognized $<span id="xdx_900_eus-gaap--ContractWithCustomerLiabilityRevenueRecognized_pn3n3_c20240101__20240331_zyHk6wFI4b6e" title="Contract liability recognized">134</span> of the contract liability that was recorded as a January 1, 2024 beginning balance.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify">On July 29, 2024, Dragonfly Energy Corp. (“Legacy Dragonfly”), one of the wholly-owned subsidiaries 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”) (<b>Note 7</b>). The $<span id="xdx_900_ecustom--LicensingFee_pn3n3_c20240729__20240729__us-gaap--TypeOfArrangementAxis__custom--LicenseAgreementMember_zcVtJsxpIVyg" title="Licensing fee">5,000</span> initial licensing fee is being recognized as revenue on a straight-line basis over five<span id="xdx_900_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20240729__us-gaap--TypeOfArrangementAxis__custom--LicenseAgreementMember_zt0b0qAOsq06" style="display: none" title="Estimated useful life">5</span> years. The Company has recorded $<span id="xdx_903_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250101__20250331__us-gaap--TypeOfArrangementAxis__custom--LicenseAgreementMember_zNOlic7RCTOb" title="Revenue">250</span> in revenue related to the License Agreement for the three months ended March 31, 2025. As of March 31, 2025 and December 31, 2024, the contract liability related to the Company’s deferred revenue were approximately $<span id="xdx_90F_eus-gaap--DeferredRevenue_iI_pn3n3_c20250331__us-gaap--TypeOfArrangementAxis__custom--LicenseAgreementMember_zCDNR7vLHkwi" title="Deferred revenue">4,333</span> and $<span id="xdx_90A_eus-gaap--DeferredRevenue_iI_pn3n3_c20241231__us-gaap--TypeOfArrangementAxis__custom--LicenseAgreementMember_zBHmYMNSSb4" title="Deferred revenue">4,583</span>, respectively. As of March 31, 2025, the Company had $<span id="xdx_905_eus-gaap--DeferredIncomeCurrent_iI_pn3n3_c20250331__us-gaap--TypeOfArrangementAxis__custom--LicenseAgreementMember_zyGsvJouRl56" title="Short term deferred revenue">1,000</span> in short term deferred revenue and $<span id="xdx_901_eus-gaap--DeferredIncomeNoncurrent_iI_pn3n3_c20250331__us-gaap--TypeOfArrangementAxis__custom--LicenseAgreementMember_z5JQszlRnYmg" title="Long term deferred revenue">3,333</span> in long-term deferred revenue related to the License Agreement.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 2 – Summary of Significant Accounting Policies (continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> P30D P90D 137000 317000 306000 134000 5000000 P5Y 250000 4333000 4583000 1000000 3333000 <p id="xdx_846_ecustom--DisaggregationOfRevenuePolicyTextBlock_zwz5IUJsd886" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration: underline"><span id="xdx_86B_zOyJikHgVNgc">Disaggregation of Revenue</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_896_eus-gaap--DisaggregationOfRevenueTableTextBlock_zuSxeAWQIOpe" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table present the Company’s disaggregated revenues by distribution channel:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span><span id="xdx_8B1_zbmJmrryfi81">SCHEDULE OF DISAGGREGATED REVENUES BY DISTRIBUTION CHANNEL</span></span> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%; margin-left: 0.5in"> <tr style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 9pt"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_496_20250101__20250331_z3Uo9Es0R3R3" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_49C_20240101__20240331_zFCvUrjf1Cvb" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="6" style="text-align: center">For the Three Months Ended</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">March 31,</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid">Sales</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2025</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2024</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_404_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_hus-gaap--ContractWithCustomerSalesChannelAxis__us-gaap--SalesChannelDirectlyToConsumerMember_znzyQKJMSiq2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left; padding-left: 9pt">Direct to customer</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">5,015</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">5,203</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_hus-gaap--ContractWithCustomerSalesChannelAxis__custom--OriginalEquipmentManufacturersMember_zCtAd9MgR7L1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 9pt">Original equipment manufacture</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,091</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,302</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_hus-gaap--ContractWithCustomerSalesChannelAxis__custom--LicenseFeeRevenueMember_zfkmQs5H5NG7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 9pt">License fee revenue</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">250</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0650">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_zC02BkhGwgY2" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; padding-left: 0.25in">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">13,356</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">12,505</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A3_z0ypXn7vz6Y9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">  </p> <p id="xdx_896_eus-gaap--DisaggregationOfRevenueTableTextBlock_zuSxeAWQIOpe" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table present the Company’s disaggregated revenues by distribution channel:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span><span id="xdx_8B1_zbmJmrryfi81">SCHEDULE OF DISAGGREGATED REVENUES BY DISTRIBUTION CHANNEL</span></span> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%; margin-left: 0.5in"> <tr style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 9pt"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_496_20250101__20250331_z3Uo9Es0R3R3" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_49C_20240101__20240331_zFCvUrjf1Cvb" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="6" style="text-align: center">For the Three Months Ended</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">March 31,</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid">Sales</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2025</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2024</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_404_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_hus-gaap--ContractWithCustomerSalesChannelAxis__us-gaap--SalesChannelDirectlyToConsumerMember_znzyQKJMSiq2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left; padding-left: 9pt">Direct to customer</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">5,015</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">5,203</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_hus-gaap--ContractWithCustomerSalesChannelAxis__custom--OriginalEquipmentManufacturersMember_zCtAd9MgR7L1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 9pt">Original equipment manufacture</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,091</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,302</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_hus-gaap--ContractWithCustomerSalesChannelAxis__custom--LicenseFeeRevenueMember_zfkmQs5H5NG7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 9pt">License fee revenue</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">250</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0650">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_zC02BkhGwgY2" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; padding-left: 0.25in">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">13,356</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">12,505</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 5015000 5203000 8091000 7302000 250000 13356000 12505000 <p id="xdx_849_eus-gaap--StandardProductWarrantyPolicy_zeh8JkRc1fMd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i><span style="text-decoration: underline"><span id="xdx_862_z1a5jykp5Twf">Product Warranty</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company offers assurance type warranties from <span id="xdx_90C_ecustom--ProductWarrantyTermProvided_dtY_c20250101__20250331__srt--RangeAxis__srt--MinimumMember_zB9668Q30z11" title="Term of product warranty provided">5</span> to <span id="xdx_900_ecustom--ProductWarrantyTermProvided_dtY_c20250101__20250331__srt--RangeAxis__srt--MaximumMember_zDeMl7hOJO3a" title="Term of product warranty provided">10</span> 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 the Company’s 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 its 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 March 31, 2025 and December 31, 2024 to be $<span id="xdx_90A_eus-gaap--ProductWarrantyAccrual_iI_pn3n3_c20250331_zmdNw41R0Jwa" title="Warranty obilgation outstanding">588</span> and $<span id="xdx_907_eus-gaap--ProductWarrantyAccrual_iI_pn3n3_c20241231_zHleoSVugzl9" title="Warranty obilgation outstanding">514</span>, respectively. The Company incurred warranty expense of $<span id="xdx_90C_eus-gaap--ProductWarrantyAccrualWarrantiesIssued_pn3n3_c20250101__20250331_zfzwFwFSLBzf" title="Warranty expense">123</span> and $<span id="xdx_905_eus-gaap--ProductWarrantyAccrualWarrantiesIssued_pn3n3_c20240101__20240331_zerqsX9X5WF7" title="Warranty expense">541</span> for the three months ended March 31, 2025 and 2024, respectively.</p> <p id="xdx_89A_eus-gaap--ScheduleOfProductWarrantyLiabilityTableTextBlock_zmQKYv1DGJak" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="display: none"><span id="xdx_8B0_zRomh10hUsQe">SCHEDULE OF WARRANTY OBLIGATION</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td style="padding-left: 0pt"> </td><td> </td> <td colspan="2" id="xdx_491_20250101__20250331_zJFHSX6jKKLg" style="text-align: center">March 31,</td><td> </td> </tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2025</td><td style="padding-bottom: 1pt"> </td> </tr> <tr id="xdx_409_eus-gaap--ProductWarrantyAccrual_iS_pn3n3_z7xmHGWLOKz5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 78%; text-align: left; padding-left: 0pt">Beginning warranty obligation</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 18%; text-align: right">514</td><td style="width: 1%; text-align: left"> </td> </tr> <tr id="xdx_40A_eus-gaap--ProductWarrantyAccrualWarrantiesIssued_pn3n3_zwWUo7fFFFyg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 0pt">Provision of warranty expense</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">123</td><td style="text-align: left"> </td> </tr> <tr id="xdx_409_eus-gaap--ProductWarrantyAccrualPayments_iN_pn3n3_di_zEEcFW4Dg9x" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 0pt">Settlement of warranty claims</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(49</td><td style="padding-bottom: 1pt; text-align: left">)</td> </tr> <tr id="xdx_401_eus-gaap--ProductWarrantyAccrual_iE_pn3n3_zf0KzJoMUJCj" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; padding-left: 0.125in">Ending warranty obligation</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">588</td><td style="padding-bottom: 2.5pt; text-align: left"> </td> </tr> </table> <p id="xdx_8A5_z6r1aK3RfBui" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> P5Y P10Y 588000 514000 123000 541000 <p id="xdx_89A_eus-gaap--ScheduleOfProductWarrantyLiabilityTableTextBlock_zmQKYv1DGJak" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="display: none"><span id="xdx_8B0_zRomh10hUsQe">SCHEDULE OF WARRANTY OBLIGATION</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td style="padding-left: 0pt"> </td><td> </td> <td colspan="2" id="xdx_491_20250101__20250331_zJFHSX6jKKLg" style="text-align: center">March 31,</td><td> </td> </tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2025</td><td style="padding-bottom: 1pt"> </td> </tr> <tr id="xdx_409_eus-gaap--ProductWarrantyAccrual_iS_pn3n3_z7xmHGWLOKz5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 78%; text-align: left; padding-left: 0pt">Beginning warranty obligation</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 18%; text-align: right">514</td><td style="width: 1%; text-align: left"> </td> </tr> <tr id="xdx_40A_eus-gaap--ProductWarrantyAccrualWarrantiesIssued_pn3n3_zwWUo7fFFFyg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 0pt">Provision of warranty expense</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">123</td><td style="text-align: left"> </td> </tr> <tr id="xdx_409_eus-gaap--ProductWarrantyAccrualPayments_iN_pn3n3_di_zEEcFW4Dg9x" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 0pt">Settlement of warranty claims</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(49</td><td style="padding-bottom: 1pt; text-align: left">)</td> </tr> <tr id="xdx_401_eus-gaap--ProductWarrantyAccrual_iE_pn3n3_zf0KzJoMUJCj" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; padding-left: 0.125in">Ending warranty obligation</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">588</td><td style="padding-bottom: 2.5pt; text-align: left"> </td> </tr> </table> 514000 123000 49000 588000 <p id="xdx_84D_eus-gaap--ConcentrationRiskCreditRisk_zBTfX7DU3Y3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration: underline"><span id="xdx_861_zZc0RFnpAl88">Concentrations</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2025, receivables from Customer A comprised approximately <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20250101__20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerAMember_zhnrC7zNK3eh" title="Concentration risk, percentage">31</span>% of accounts receivable. As of December 31, 2024, receivables from Customer A and B comprised approximately <span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerAMember_z8s4DSCdQ44g" title="Concentration risk, percentage">15</span>% and <span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerBMember_z3HpU2G5OQJh" title="Concentration risk, percentage">21</span>%, respectively, of accounts receivable. There are no other significant accounts receivable concentration.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the three months ended March 31, 2025, sales from Customer A comprised approximately <span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20250101__20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--RevenueFromContractWithCustomerMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerAMember_zgCERYJ9x8Wi" title="Concentration risk, percentage">18</span>% of the Company’s total revenue. For the three months ended March 31, 2024, sales from Customer A comprised approximately <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20240101__20240331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--RevenueFromContractWithCustomerMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerAMember_zAHcMHQqwH71" title="Concentration risk, percentage">16</span>% of the Company’s total revenue.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 2 – Summary of Significant Accounting Policies (continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><i><span style="text-decoration: underline">Concentrations (Continued)</span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">As of March 31, 2025, payables to Vendor A and Vendor C comprised approximately <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20250101__20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--VendorAMember_zpR6dgtn0Qg4" title="Concentration risk, percentage">27</span>% and <span id="xdx_900_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20250101__20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--VendorCMember_ze1tgl2RXym2" title="Concentration risk, percentage">18</span>%, respectively, of accounts payables. As of December 31, 2024, payables to Vendor A, Vendor B, and Vendor C comprised approximately <span id="xdx_905_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--VendorAMember_zWp3NSF4m5sl" title="Concentration risk, percentage">33</span>%, <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--VendorBMember_zSeArTERUIG9" title="Concentration risk, percentage">11</span>%, and <span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--VendorCMember_zOkIz6vSToZk" title="Concentration risk, percentage">12</span>%, respectively, of accounts payables.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">For the three months ended March 31, 2025, Vendor A accounted for approximately <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20250101__20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--TotalPurchasesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--VendorAMember_zBMgHaCrwXGg" title="Concentration risk, percentage">21</span>% of the Company’s total purchases. For the three months ended March 31, 2024, Vendor B accounted for approximately <span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20240101__20240331__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--TotalPurchasesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--VendorBMember_zRRL9Sct02tc" title="Concentration risk, percentage">12</span>% of the Company’s total purchases.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> 0.31 0.15 0.21 0.18 0.16 0.27 0.18 0.33 0.11 0.12 0.21 0.12 <p id="xdx_84F_eus-gaap--ShareBasedCompensationOptionAndIncentivePlansPolicy_zzeDM0PJ2xkb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><i><span style="text-decoration: underline"><span id="xdx_865_zeKATbY87Q02">Stock-Based Compensation</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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 (<b>Note 12</b>). 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 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-variant: small-caps; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 2 – Summary of Significant Accounting Policies (continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p id="xdx_843_eus-gaap--IncomeTaxPolicyTextBlock_zLFuDIwHSm05" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><i><span style="text-decoration: underline"><span id="xdx_867_zz0FxQAw9sF6">Income Taxes</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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 $<span id="xdx_909_eus-gaap--UnrecognizedTaxBenefits_iI_pn3n3_c20241231_zDeRTymfZUMe" title="Uncertain tax positions"><span id="xdx_905_eus-gaap--UnrecognizedTaxBenefits_iI_pn3n3_c20250331_zCOj6Hmn9F58" title="Uncertain tax positions">55</span></span> and $<span id="xdx_906_eus-gaap--UnrecognizedTaxBenefits_iI_pn3n3_c20241231_zWBGkbP9JsH1" title="Uncertain tax positions">55</span> as of March 31, 2025 and December 31, 2024, respectively, of uncertain tax positions.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> 55000 55000 55000 <p id="xdx_84B_eus-gaap--EarningsPerSharePolicyTextBlock_z1qOOvCaQjoc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><i><span style="text-decoration: underline"><span id="xdx_865_zmOzgLxN3GL3">Net Loss per Common Share</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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 earnings 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p id="xdx_89D_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_zyCGoM8HZd9l" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0pt 0pt 0">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:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span style="display: none"><span id="xdx_8B8_zhRHDpH8860j">SCHEDULE OF POTENTIAL SHARES OF COMMON STOCK EXCLUDED FROM DILUTED NET LOSS PER SHARE</span></span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_493_20250101__20250331_zZMkOZgXVgf3" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_493_20240101__20240331_zBtCpUYZHbVa" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">March 31,</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2025</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2024</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_401_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zlDmsh05addj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Warrants</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">52,256,156</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">2,723,400</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--RestrictedStockUnitsRSUMember_zIvxyA5S706f" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Restricted stock units</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">323,591</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">18,013</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--SeriesAPreferredStockMember_zQ6Mtp5seQ7c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Series A Preferred Stock </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,840,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0726">-</span></td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zFRC1XYBZdD1" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Options</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">161,939</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">257,255</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_z9bREfA2PwGc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Weighted average number of common shares - basic</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">56,581,686</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">2,998,668</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8AD_zxeYxoKP0618" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p id="xdx_89D_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_zyCGoM8HZd9l" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0pt 0pt 0">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:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span style="display: none"><span id="xdx_8B8_zhRHDpH8860j">SCHEDULE OF POTENTIAL SHARES OF COMMON STOCK EXCLUDED FROM DILUTED NET LOSS PER SHARE</span></span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_493_20250101__20250331_zZMkOZgXVgf3" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_493_20240101__20240331_zBtCpUYZHbVa" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">March 31,</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2025</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2024</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_401_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zlDmsh05addj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Warrants</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">52,256,156</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">2,723,400</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--RestrictedStockUnitsRSUMember_zIvxyA5S706f" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Restricted stock units</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">323,591</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">18,013</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--SeriesAPreferredStockMember_zQ6Mtp5seQ7c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Series A Preferred Stock </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,840,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0726">-</span></td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zFRC1XYBZdD1" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Options</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">161,939</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">257,255</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_z9bREfA2PwGc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Weighted average number of common shares - basic</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">56,581,686</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">2,998,668</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 52256156000 2723400000 323591000 18013000 3840000000 161939000 257255000 56581686000 2998668000 <p id="xdx_842_eus-gaap--LesseeLeasesPolicyTextBlock_zYZpVqGR758g" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><i><span style="text-decoration: underline"><span id="xdx_86E_zWhQPAdLXlU6">Leases</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp. </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 2 – Summary of Significant Accounting Policies (continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0pt 0pt 0"> </p> <p id="xdx_840_eus-gaap--DerivativesPolicyTextBlock_zPUy7tMROp6g" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><span style="text-decoration: underline"><span id="xdx_867_zGb3XMhLl5z8">Derivative Accounting</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company evaluates its financial instruments, including preferred stock and warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives pursuant to ASC 815, Derivatives and Hedging. Warrants are assessed for classification as either equity or liabilities based on their specific terms and applicable accounting guidance. Equity-classified warrants are recorded within additional paid-in capital at their grant date fair value and are not subsequently remeasured, while liability-classified warrants are recorded at fair value on the issuance date and remeasured at each reporting period, with changes in fair value recognized in earnings. Preferred stock is evaluated to determine whether it should be classified as a liability, equity, or within mezzanine (temporary) equity. This assessment considers the presence of redemption features not solely within the Company’s control or if redemption is deemed probable. Preferred stock classified as mezzanine equity is presented between liabilities and equity on the consolidated balance sheets, with changes to the redemption value accounted for in accordance with ASC 480, Distinguishing Liabilities from Equity. If preferred stock contains embedded derivatives that are not clearly and closely related to the host instrument, such derivatives are bifurcated and measured at fair value, with changes recorded in earnings. Fair value is determined using appropriate valuation techniques, such as the Black-Scholes option pricing model or discounted cash flow analysis, considering the terms of the financial instruments and prevailing market conditions at the reporting date.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_844_eus-gaap--SegmentReportingPolicyPolicyTextBlock_zSB4F6Un1Xe5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><i><span style="text-decoration: underline"><span id="xdx_866_zKMnxnVaxHIe">Segment Reporting</span></span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">Operating segments are identified (<b>Note 14</b>) 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. Previously, the Company recognized one operating segment. Historically, the Company reported a single operating and reportable segment, as management evaluated the business on a consolidated basis. During the fourth quarter of 2024, the Company reassessed its internal reporting structure and how management monitors operations and makes decisions. As a result of this reassessment, the Company determined that it now manages its business through two distinct operating segments. This change was driven by the development of the Company’s operations and internal decision-making processes, including the introduction of separate performance metrics and discrete financial information for each segment.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p id="xdx_84A_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_z9aKVo91bUwi" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><i><span style="text-decoration: underline"><span id="xdx_866_zyA6nZfxfuEj">Recently issued accounting pronouncements</span></span>:</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><i><span style="text-decoration: underline"> </span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0pt 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires a public entity to disclose additional information about specific expense categories in the notes to the financial statements on an annual and interim basis. It is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. In January 2025, the FASB issued ASU 2025-01 to clarify that all public entities, including non-calendar year-end entities, should adopt the disclosure requirements of ASU 2024-03. The Company is currently evaluating the impact.</p> <p id="xdx_806_eus-gaap--FairValueDisclosuresTextBlock_ziv6N96vF5Y9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 3 - <span id="xdx_82A_zuKyOCEh7Bgc">FAIR VALUE MEASUREMENTS</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 0.25in; vertical-align: top">●<span style="font-size: 10pt"></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-size: 10pt">Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: top">●<span style="font-size: 10pt"></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-size: 10pt">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. </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: top">●<span style="font-size: 10pt"></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-size: 10pt">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. </span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.25in; text-align: justify; text-indent: -0.25in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 3 - Fair Value Measurements (continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p id="xdx_893_eus-gaap--ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock_zw44ki31fmx2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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 March 31, 2025:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span><span id="xdx_8BD_zgYCTI0cYij8">SCHEDULE OF FAIR VALUE OF ASSETS AND LIABILITIES</span></span> </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><span style="font-size: 10pt">Carrying Amount</span></td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> </p><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">Fair Value</p></td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Level 1)</p></td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Level 2)</p></td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Level 3)</p></td><td style="text-align: center; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="18" style="border-bottom: Black 1pt solid; text-align: center">As of March 31, 2025</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: Black 1pt solid; text-align: left">Liabilities</td><td style="padding-bottom: 1pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 35%; text-align: left">Warrant liability- Term Loan</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--DerivativeLiabilitiesNoncurrent_iI_pn3n3_c20250331__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FinancialInstrumentAxis__custom--TermLoanMember_zN1p3DEa0xsb" style="width: 9%; text-align: right" title="Carrying Amount">1,674</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20250331__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FinancialInstrumentAxis__custom--TermLoanMember_zI2jlJS5f5R3" style="width: 9%; text-align: right">1,674</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20250331__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FinancialInstrumentAxis__custom--TermLoanMember_zrxcgTMmkQzk" style="width: 9%; text-align: right" title="Level 1"><span style="-sec-ix-hidden: xdx2ixbrl0749">-</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20250331__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FinancialInstrumentAxis__custom--TermLoanMember_zLTor7GThYQ" style="width: 9%; text-align: right" title="Level 2">1,674</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20250331__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member__us-gaap--FinancialInstrumentAxis__custom--TermLoanMember_zsukIZOJJ1Wc" style="width: 9%; text-align: right" title="Level 3"><span style="-sec-ix-hidden: xdx2ixbrl0753">-</span></td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-align: left">Warrant liability- June 2023 Public Offering</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--DerivativeLiabilitiesNoncurrent_iI_pn3n3_c20250331__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FinancialInstrumentAxis__custom--JunePublicOfferingMember_zwLv77Tl4BUh" style="border-bottom: Black 1pt solid; text-align: right" title="Carrying Amount">337</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20250331__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FinancialInstrumentAxis__custom--JunePublicOfferingMember_z4cK2IJpEQTe" style="border-bottom: Black 1pt solid; text-align: right" title="Fair value">337</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20250331__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FinancialInstrumentAxis__custom--JunePublicOfferingMember_zm29eqrI2Pe3" style="border-bottom: Black 1pt solid; text-align: right" title="Level 1">          <span style="-sec-ix-hidden: xdx2ixbrl0759">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20250331__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FinancialInstrumentAxis__custom--JunePublicOfferingMember_zsXWdsoyAJT2" style="border-bottom: Black 1pt solid; text-align: right" title="Level 2">337</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20250331__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member__us-gaap--FinancialInstrumentAxis__custom--JunePublicOfferingMember_zLLsr3UJi7e" style="border-bottom: Black 1pt solid; text-align: right" title="Level 3">         <span style="-sec-ix-hidden: xdx2ixbrl0763">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98C_eus-gaap--DerivativeLiabilitiesNoncurrent_iI_pn3n3_c20250331__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zvNwxxlbTCM8" style="border-bottom: Black 2.5pt double; text-align: right" title="Carrying Amount">2,011</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_980_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20250331__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zt0SpFHDb6Cg" style="border-bottom: Black 2.5pt double; text-align: right" title="Fair Value">2,011</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98D_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20250331__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zKGRVUSHalEf" style="border-bottom: Black 2.5pt double; text-align: right" title="Fair Value"><span style="-sec-ix-hidden: xdx2ixbrl0769">-</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_984_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20250331__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_z8qUYjUHilRh" style="border-bottom: Black 2.5pt double; text-align: right" title="Fair Value">2,011</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20250331__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_z8r0nJOBEZmk" style="border-bottom: Black 2.5pt double; text-align: right" title="Fair Value"><span style="-sec-ix-hidden: xdx2ixbrl0773">-</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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, 2024:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><span style="font-size: 10pt">Carrying Amount</span></td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> </p><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">Fair Value</p></td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Level 1)</p></td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Level 2)</p></td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Level 3)</p></td><td style="text-align: center; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="18" style="border-bottom: Black 1pt solid; text-align: center">As of December 31, 2024</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: Black 1pt solid; text-align: left">Liabilities</td><td style="padding-bottom: 1pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 35%; text-align: left">Warrant liability - Term Loan</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_eus-gaap--DerivativeLiabilitiesNoncurrent_iI_pn3n3_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FinancialInstrumentAxis__custom--TermLoanMember_zwNB8AtjqoAg" style="width: 9%; text-align: right" title="Carrying Amount">3,883</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FinancialInstrumentAxis__custom--TermLoanMember_zuuORgNRiOha" style="width: 9%; text-align: right" title="Fair Value">3,883</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FinancialInstrumentAxis__custom--TermLoanMember_z9ytjzweKX8j" style="width: 9%; text-align: right" title="Level 1"><span style="-sec-ix-hidden: xdx2ixbrl0779">-</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FinancialInstrumentAxis__custom--TermLoanMember_zHpzSyPG6v03" style="width: 9%; text-align: right" title="Level 2">3,883</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member__us-gaap--FinancialInstrumentAxis__custom--TermLoanMember_zeebOWl6PYci" style="width: 9%; text-align: right" title="Level 3"><span style="-sec-ix-hidden: xdx2ixbrl0783">-</span></td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-align: left">Warrant liability - June 2023 Public Offering</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--DerivativeLiabilitiesNoncurrent_iI_pn3n3_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FinancialInstrumentAxis__custom--JunePublicOfferingMember_zkPRJjVjxqs9" style="border-bottom: Black 1pt solid; text-align: right" title="Carrying Amount">1,250</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FinancialInstrumentAxis__custom--JunePublicOfferingMember_zIPL08KTXGrd" style="border-bottom: Black 1pt solid; text-align: right" title="Fair value">1,250</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FinancialInstrumentAxis__custom--JunePublicOfferingMember_zqLeiz7T5Spk" style="border-bottom: Black 1pt solid; text-align: right" title="Level 1">       <span style="-sec-ix-hidden: xdx2ixbrl0789">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FinancialInstrumentAxis__custom--JunePublicOfferingMember_zqW9ZGCwwc1l" style="border-bottom: Black 1pt solid; text-align: right" title="Level 2">1,250</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member__us-gaap--FinancialInstrumentAxis__custom--JunePublicOfferingMember_zlVuqWU7wRJf" style="border-bottom: Black 1pt solid; text-align: right" title="Level 3">     <span style="-sec-ix-hidden: xdx2ixbrl0793">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_eus-gaap--DerivativeLiabilitiesNoncurrent_iI_pn3n3_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zFSdVAvUG7e3" style="border-bottom: Black 2.5pt double; text-align: right" title="Carrying Amount">5,133</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_989_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_z7wfXOXJbwwa" style="border-bottom: Black 2.5pt double; text-align: right" title="Fair Value">5,133</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zsejjm51eMb" style="border-bottom: Black 2.5pt double; text-align: right" title="Fair Value"><span style="-sec-ix-hidden: xdx2ixbrl0799">-</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zoKSm7Ldsm3e" style="border-bottom: Black 2.5pt double; text-align: right" title="Fair Value">5,133</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_984_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zEti6md4ZgX3" style="border-bottom: Black 2.5pt double; text-align: right" title="Fair Value"><span style="-sec-ix-hidden: xdx2ixbrl0803">-</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A1_zOTeg3168ty8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">Due to Black-Scholes calculation being utilized on all fair value measurement of warrant liabilities as of March 31, 2025 and December 31, 2024, the fair value warrant liabilities were transferred from Level 3 to Level 2 as of December 31, 2024. This is due to the observable inputs (such as the Company’s stock price and comparable company volatility calculations) included in the Black-Scholes calculation, which makes the fair value measurement of the warrant liabilities more closely aligned with Level 2.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">The carrying amounts of accounts receivable and accounts payable are considered Level 1 and approximate fair value as of March 31, 2025 and December 31, 2024 because of the relatively short maturity of these instruments.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">The carrying value of the Term Loan as of March 31, 2025 and December 31, 2024 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 3 - Fair Value Measurements (continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: left"><b>Level 3 Roll forward</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">The changes for Level 3 items measured at fair value on recurring basis using significant unobservable inputs are as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p id="xdx_89C_eus-gaap--FairValueLiabilitiesMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock_hus-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zflcbq0pmS4i" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">There was no Level 3 activity for the three months ended March 31, 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span><span id="xdx_8B1_zWpLaHuvmaE3">SCHEDULE OF FAIR VALUE ON RECURRING BASIS USING SIGNIFICANT UNOBSERVABLE INPUTS</span></span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_498_20250101__20250331__us-gaap--FinancialInstrumentAxis__custom--TermLoanMember_zWmiABGZGHD6" style="border-bottom: Black 1pt solid; text-align: center"><p style="margin-top: 0; margin-bottom: 0">Warrant</p> <p style="margin-top: 0; margin-bottom: 0">Liability - Term Loan</p></td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_498_20250101__20250331__us-gaap--FinancialInstrumentAxis__custom--JunePublicOfferingMember_zCD9SvY54HRc" style="border-bottom: Black 1pt solid; text-align: center"><p style="margin-top: 0; margin-bottom: 0">Warrant</p> <p style="margin-top: 0; margin-bottom: 0">liability- June Public</p> <p style="margin-top: 0; margin-bottom: 0">Offering</p></td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_40F_eus-gaap--FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue_iS_pn3n3_zN81VzoQXfS7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; font-weight: bold">Fair value as of January 1, 2024</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,014</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">3,434</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue_iS_pn3n3_z6g0nAtbMDN9" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Fair value, beginning balance</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,014</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,434</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisLiabilityPeriodIncreaseDecrease_iN_pn3n3_di_zFxMZbcqI1Z9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="font-size: 10pt">Change in fair value, gain included in net loss<sup id="xdx_F4E_z8fDbnyZQPr1">(1)</sup></span></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(4</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(220</td><td style="text-align: left">)</td></tr> <tr id="xdx_407_eus-gaap--FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue_iE_pn3n3_zB9ZkqbOfVGk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 2.5pt">Fair value as of March 31, 2024</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,010</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,214</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue_iE_pn3n3_zVgEXAw50k33" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 2.5pt">Fair value, ending balance</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,010</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,214</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"><sup id="xdx_F0B_zIMX16O6qGvj">(1)</sup><i></i></td><td style="text-align: justify"><i id="xdx_F12_z3UO0w5Ov83d">Changes in fair value of warrant liabilities are disclosed separately in the Condensed Consolidated Statements of Operations.</i></td> </tr></table> <p id="xdx_8A4_z1amlvMrc4Xb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-variant: small-caps; text-transform: uppercase"><b><span style="font-variant: small-caps; text-transform: uppercase">Dragonfly Energy Holdings Corp.</span> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <p id="xdx_893_eus-gaap--ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock_zw44ki31fmx2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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 March 31, 2025:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span><span id="xdx_8BD_zgYCTI0cYij8">SCHEDULE OF FAIR VALUE OF ASSETS AND LIABILITIES</span></span> </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><span style="font-size: 10pt">Carrying Amount</span></td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> </p><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">Fair Value</p></td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Level 1)</p></td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Level 2)</p></td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Level 3)</p></td><td style="text-align: center; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="18" style="border-bottom: Black 1pt solid; text-align: center">As of March 31, 2025</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: Black 1pt solid; text-align: left">Liabilities</td><td style="padding-bottom: 1pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 35%; text-align: left">Warrant liability- Term Loan</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--DerivativeLiabilitiesNoncurrent_iI_pn3n3_c20250331__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FinancialInstrumentAxis__custom--TermLoanMember_zN1p3DEa0xsb" style="width: 9%; text-align: right" title="Carrying Amount">1,674</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20250331__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FinancialInstrumentAxis__custom--TermLoanMember_zI2jlJS5f5R3" style="width: 9%; text-align: right">1,674</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20250331__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FinancialInstrumentAxis__custom--TermLoanMember_zrxcgTMmkQzk" style="width: 9%; text-align: right" title="Level 1"><span style="-sec-ix-hidden: xdx2ixbrl0749">-</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20250331__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FinancialInstrumentAxis__custom--TermLoanMember_zLTor7GThYQ" style="width: 9%; text-align: right" title="Level 2">1,674</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20250331__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member__us-gaap--FinancialInstrumentAxis__custom--TermLoanMember_zsukIZOJJ1Wc" style="width: 9%; text-align: right" title="Level 3"><span style="-sec-ix-hidden: xdx2ixbrl0753">-</span></td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-align: left">Warrant liability- June 2023 Public Offering</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--DerivativeLiabilitiesNoncurrent_iI_pn3n3_c20250331__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FinancialInstrumentAxis__custom--JunePublicOfferingMember_zwLv77Tl4BUh" style="border-bottom: Black 1pt solid; text-align: right" title="Carrying Amount">337</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20250331__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FinancialInstrumentAxis__custom--JunePublicOfferingMember_z4cK2IJpEQTe" style="border-bottom: Black 1pt solid; text-align: right" title="Fair value">337</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20250331__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FinancialInstrumentAxis__custom--JunePublicOfferingMember_zm29eqrI2Pe3" style="border-bottom: Black 1pt solid; text-align: right" title="Level 1">          <span style="-sec-ix-hidden: xdx2ixbrl0759">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20250331__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FinancialInstrumentAxis__custom--JunePublicOfferingMember_zsXWdsoyAJT2" style="border-bottom: Black 1pt solid; text-align: right" title="Level 2">337</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20250331__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member__us-gaap--FinancialInstrumentAxis__custom--JunePublicOfferingMember_zLLsr3UJi7e" style="border-bottom: Black 1pt solid; text-align: right" title="Level 3">         <span style="-sec-ix-hidden: xdx2ixbrl0763">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98C_eus-gaap--DerivativeLiabilitiesNoncurrent_iI_pn3n3_c20250331__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zvNwxxlbTCM8" style="border-bottom: Black 2.5pt double; text-align: right" title="Carrying Amount">2,011</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_980_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20250331__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zt0SpFHDb6Cg" style="border-bottom: Black 2.5pt double; text-align: right" title="Fair Value">2,011</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98D_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20250331__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zKGRVUSHalEf" style="border-bottom: Black 2.5pt double; text-align: right" title="Fair Value"><span style="-sec-ix-hidden: xdx2ixbrl0769">-</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_984_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20250331__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_z8qUYjUHilRh" style="border-bottom: Black 2.5pt double; text-align: right" title="Fair Value">2,011</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20250331__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_z8r0nJOBEZmk" style="border-bottom: Black 2.5pt double; text-align: right" title="Fair Value"><span style="-sec-ix-hidden: xdx2ixbrl0773">-</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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, 2024:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><span style="font-size: 10pt">Carrying Amount</span></td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> </p><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">Fair Value</p></td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Level 1)</p></td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Level 2)</p></td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Level 3)</p></td><td style="text-align: center; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="18" style="border-bottom: Black 1pt solid; text-align: center">As of December 31, 2024</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: Black 1pt solid; text-align: left">Liabilities</td><td style="padding-bottom: 1pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 35%; text-align: left">Warrant liability - Term Loan</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_eus-gaap--DerivativeLiabilitiesNoncurrent_iI_pn3n3_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FinancialInstrumentAxis__custom--TermLoanMember_zwNB8AtjqoAg" style="width: 9%; text-align: right" title="Carrying Amount">3,883</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FinancialInstrumentAxis__custom--TermLoanMember_zuuORgNRiOha" style="width: 9%; text-align: right" title="Fair Value">3,883</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FinancialInstrumentAxis__custom--TermLoanMember_z9ytjzweKX8j" style="width: 9%; text-align: right" title="Level 1"><span style="-sec-ix-hidden: xdx2ixbrl0779">-</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FinancialInstrumentAxis__custom--TermLoanMember_zHpzSyPG6v03" style="width: 9%; text-align: right" title="Level 2">3,883</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member__us-gaap--FinancialInstrumentAxis__custom--TermLoanMember_zeebOWl6PYci" style="width: 9%; text-align: right" title="Level 3"><span style="-sec-ix-hidden: xdx2ixbrl0783">-</span></td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-align: left">Warrant liability - June 2023 Public Offering</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--DerivativeLiabilitiesNoncurrent_iI_pn3n3_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FinancialInstrumentAxis__custom--JunePublicOfferingMember_zkPRJjVjxqs9" style="border-bottom: Black 1pt solid; text-align: right" title="Carrying Amount">1,250</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FinancialInstrumentAxis__custom--JunePublicOfferingMember_zIPL08KTXGrd" style="border-bottom: Black 1pt solid; text-align: right" title="Fair value">1,250</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FinancialInstrumentAxis__custom--JunePublicOfferingMember_zqLeiz7T5Spk" style="border-bottom: Black 1pt solid; text-align: right" title="Level 1">       <span style="-sec-ix-hidden: xdx2ixbrl0789">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FinancialInstrumentAxis__custom--JunePublicOfferingMember_zqW9ZGCwwc1l" style="border-bottom: Black 1pt solid; text-align: right" title="Level 2">1,250</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member__us-gaap--FinancialInstrumentAxis__custom--JunePublicOfferingMember_zlVuqWU7wRJf" style="border-bottom: Black 1pt solid; text-align: right" title="Level 3">     <span style="-sec-ix-hidden: xdx2ixbrl0793">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_eus-gaap--DerivativeLiabilitiesNoncurrent_iI_pn3n3_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zFSdVAvUG7e3" style="border-bottom: Black 2.5pt double; text-align: right" title="Carrying Amount">5,133</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_989_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_z7wfXOXJbwwa" style="border-bottom: Black 2.5pt double; text-align: right" title="Fair Value">5,133</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zsejjm51eMb" style="border-bottom: Black 2.5pt double; text-align: right" title="Fair Value"><span style="-sec-ix-hidden: xdx2ixbrl0799">-</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zoKSm7Ldsm3e" style="border-bottom: Black 2.5pt double; text-align: right" title="Fair Value">5,133</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_984_eus-gaap--LiabilitiesFairValueDisclosure_iI_pn3n3_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zEti6md4ZgX3" style="border-bottom: Black 2.5pt double; text-align: right" title="Fair Value"><span style="-sec-ix-hidden: xdx2ixbrl0803">-</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 1674000 1674000 1674000 337000 337000 337000 2011000 2011000 2011000 3883000 3883000 3883000 1250000 1250000 1250000 5133000 5133000 5133000 <p id="xdx_89C_eus-gaap--FairValueLiabilitiesMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock_hus-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zflcbq0pmS4i" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">There was no Level 3 activity for the three months ended March 31, 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span><span id="xdx_8B1_zWpLaHuvmaE3">SCHEDULE OF FAIR VALUE ON RECURRING BASIS USING SIGNIFICANT UNOBSERVABLE INPUTS</span></span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_498_20250101__20250331__us-gaap--FinancialInstrumentAxis__custom--TermLoanMember_zWmiABGZGHD6" style="border-bottom: Black 1pt solid; text-align: center"><p style="margin-top: 0; margin-bottom: 0">Warrant</p> <p style="margin-top: 0; margin-bottom: 0">Liability - Term Loan</p></td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_498_20250101__20250331__us-gaap--FinancialInstrumentAxis__custom--JunePublicOfferingMember_zCD9SvY54HRc" style="border-bottom: Black 1pt solid; text-align: center"><p style="margin-top: 0; margin-bottom: 0">Warrant</p> <p style="margin-top: 0; margin-bottom: 0">liability- June Public</p> <p style="margin-top: 0; margin-bottom: 0">Offering</p></td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_40F_eus-gaap--FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue_iS_pn3n3_zN81VzoQXfS7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; font-weight: bold">Fair value as of January 1, 2024</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,014</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">3,434</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue_iS_pn3n3_z6g0nAtbMDN9" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Fair value, beginning balance</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,014</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,434</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisLiabilityPeriodIncreaseDecrease_iN_pn3n3_di_zFxMZbcqI1Z9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="font-size: 10pt">Change in fair value, gain included in net loss<sup id="xdx_F4E_z8fDbnyZQPr1">(1)</sup></span></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(4</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(220</td><td style="text-align: left">)</td></tr> <tr id="xdx_407_eus-gaap--FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue_iE_pn3n3_zB9ZkqbOfVGk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 2.5pt">Fair value as of March 31, 2024</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,010</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,214</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue_iE_pn3n3_zVgEXAw50k33" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 2.5pt">Fair value, ending balance</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,010</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,214</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"><sup id="xdx_F0B_zIMX16O6qGvj">(1)</sup><i></i></td><td style="text-align: justify"><i id="xdx_F12_z3UO0w5Ov83d">Changes in fair value of warrant liabilities are disclosed separately in the Condensed Consolidated Statements of Operations.</i></td> </tr></table> 1014000 3434000 1014000 3434000 4000 220000 1010000 3214000 1010000 3214000 <p id="xdx_803_eus-gaap--InventoryDisclosureTextBlock_zpFccQRnjWDc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 4 - <span id="xdx_82F_zgwDcYIq21">INVENTORY</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p id="xdx_89F_eus-gaap--ScheduleOfInventoryCurrentTableTextBlock_zsQqm12QxbSl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0">Inventory consists of the following:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span><span id="xdx_8B3_zyUfVnvo0ekg">SCHEDULE OF INVENTORY</span></span> </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20250331_z3OJpoNuCS5d" style="border-bottom: Black 1pt solid; text-align: center"><p style="margin-top: 0; margin-bottom: 0">March 31, 2025</p></td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20241231_zOTC9AbxQ2nh" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_40C_eus-gaap--InventoryRawMaterials_iI_pn3n3_maINzAGF_zyL1x52wzetf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Raw material</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">17,251</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">18,776</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--InventoryFinishedGoods_iI_pn3n3_maINzAGF_zDK4smV1rHk4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Finished goods</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4,477</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,940</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--InventoryNet_iTI_pn3n3_mtINzAGF_zKGwfMrPgXvc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total inventory</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">21,728</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">21,716</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A6_zq4fM3ft415l" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p id="xdx_89F_eus-gaap--ScheduleOfInventoryCurrentTableTextBlock_zsQqm12QxbSl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0">Inventory consists of the following:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span><span id="xdx_8B3_zyUfVnvo0ekg">SCHEDULE OF INVENTORY</span></span> </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20250331_z3OJpoNuCS5d" style="border-bottom: Black 1pt solid; text-align: center"><p style="margin-top: 0; margin-bottom: 0">March 31, 2025</p></td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20241231_zOTC9AbxQ2nh" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_40C_eus-gaap--InventoryRawMaterials_iI_pn3n3_maINzAGF_zyL1x52wzetf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Raw material</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">17,251</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">18,776</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--InventoryFinishedGoods_iI_pn3n3_maINzAGF_zDK4smV1rHk4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Finished goods</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4,477</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,940</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--InventoryNet_iTI_pn3n3_mtINzAGF_zKGwfMrPgXvc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total inventory</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">21,728</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">21,716</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 17251000 18776000 4477000 2940000 21728000 21716000 <p id="xdx_804_eus-gaap--CommitmentsAndContingenciesDisclosureTextBlock_zHP5UyzC5Sce" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 5 - <span id="xdx_829_z4OxiUlVK6Je">COMMITMENTS AND CONTINGENCIES</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0pt 0pt 0"><i>Litigation</i></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0pt 0pt 0"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0pt 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0pt 0pt 0"><i>Operating Leases</i></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0pt 0pt 0"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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 $<span id="xdx_902_eus-gaap--OperatingLeasePayments_pn3n3_c20250101__20250331__srt--RangeAxis__srt--MinimumMember_zFQoJ5Jst2C9" title="Lease payments">111</span> to $<span id="xdx_904_eus-gaap--OperatingLeasePayments_pn3n3_c20250101__20250331__srt--RangeAxis__srt--MaximumMember_z31TQikMqJ9h" title="Lease payments">309</span>. On February 2, 2022, the Company entered into a 124-month lease agreement in Reno, Nevada. The lease calls for monthly base rent of $<span id="xdx_905_ecustom--LesseeOperatingLeaseMonthlyBaseRent_pn3n3_c20220202__20220202_z0mGnCLOBrza" title="Monthly base rent">230</span>, $<span id="xdx_904_eus-gaap--OperatingLeaseCost_pn3n3_c20220202__20220202_zMuh4rKVsRni" title="Operating lease costs">23</span> of fixed operating expense costs, and estimated monthly property taxes of $<span id="xdx_903_ecustom--LesseeOperatingLeaseEstimatedMonthlyPropertyTaxes_pn3n3_c20220202__20220202_zGgnN4ovoing" title="Estimated monthly property taxes">21</span>. The monthly base rent and fixed operating expense costs are subject to escalation of <span id="xdx_90D_ecustom--LesseeOperatingLeasePercentageOfEscalationOfMonthlyBaseRent_pid_dp_uPure_c20220202__20220202_z2ZkgT5PzLo2" title="Percentage of escalation of monthly base rent">3</span>% and <span id="xdx_90F_ecustom--LesseeOperatingLeasePercentageOfEscalationOfFixOperatingExpenseCosts_pid_dp_c20220202__20220202_zsk0DVWAuVo9" title="Percentage of escalation of fix operating expense costs">2.4</span>%, 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">On April 12, 2024 the Company entered into a lease agreement, pursuant to which the Company agreed to lease an approximately <span id="xdx_90B_eus-gaap--AreaOfLand_iI_usqft_c20240412_zvEjL9Lcfhvc" title="Area of land">64,000</span> 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, was $<span id="xdx_90B_eus-gaap--PaymentsForRent_pn3n3_c20240412__20240412_z7Nivb7ac4si" title="Rent for the premises payable">45</span> for the first ten months, starting June 1, 2024, and is subject to a three percent (<span id="xdx_909_ecustom--LeaseTermPercentage_pid_dp_c20240412__20240412_zK26STytMMz7" title="Lease term percentage">3.0</span>%) increase on the anniversary of the Lease Commencement Date each year. The Company also will be responsible for twenty-five percent (<span id="xdx_904_ecustom--OperatingExpensesTaxesAndInsuranceExpensesPercentage_pid_dp_c20240412__20240412_zwg1mlC8jg5" title="Operating expenses, taxes and insurance expenses percentage">25</span>%) 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 $<span id="xdx_90D_eus-gaap--SecurityDeposit_iI_pn3n3_c20240412_zqrw0hhagnea" title="Landlord security deposit">50</span>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp. </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 5 - Commitments and Contingencies (continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <p id="xdx_89C_ecustom--ScheduleOfBreakoutOfOperatingLeasesTableTextBlock_zB1aazU9vSQ" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">The following table presents the breakout of the operating leases as of:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span><span id="xdx_8B8_zLp4IwwRtLJ5">SCHEDULE OF BREAKOUT OF OPERATING LEASES</span></span> </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20250331_zkmLRzlVaxdk" style="border-bottom: Black 1pt solid; text-align: center"><p style="margin-top: 0; margin-bottom: 0">March 31, 2025</p></td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49C_20241231_z4f0e784Mt64" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_40B_eus-gaap--OperatingLeaseRightOfUseAsset_iI_pn3n3_zhuYztkPUdq9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left; padding-bottom: 1pt">Operating lease right-of-use assets</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">19,079</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">19,737</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--OperatingLeaseLiabilityCurrent_iI_pn3n3_zmyovu1XANa8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Short-term operating lease liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,985</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,926</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_pn3n3_zs5i9JgIGW5b" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Long-term operating lease liabilities</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">21,823</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">22,588</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--OperatingLeaseLiability_iI_pn3n3_zag2ZThS0mu9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total operating lease liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">24,808</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">25,514</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Weighted average remaining lease term</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-size: 10pt"><span id="xdx_907_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20250331_zDndGc6DvK35" title="Weighted average remaining lease term">8.30</span> years</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-size: 10pt"><span id="xdx_90E_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20241231_zLYfHm81b5Pl" title="Weighted average remaining lease term">8.46</span> years</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Weighted average discount rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_908_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_c20250331_z5i9gxKKqhn2" title="Weighted average discount rate">7.88</span></td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90C_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_c20241231_zyuq7OppFT3l" title="Weighted average discount rate">7.86</span></td><td style="text-align: left">%</td></tr> </table> <p id="xdx_8AE_z3tbIi1i6W9k" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p id="xdx_898_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_zbb4gFVDBdXa" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0">At March 31, 2025, the future minimum lease payments under these operating leases are as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span><span id="xdx_8B4_z6BlVWwDuf9c">SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS UNDER OPERATING LEASES</span></span> </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="vertical-align: bottom"> <td>Fiscal Years Ending</td><td> </td> <td colspan="2" id="xdx_496_20250331_z98NULAj8SQ9"> </td><td> </td></tr> <tr id="xdx_400_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_pn3n3_maLOLLPzo30_zpb1gEcs1gkg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%"><span style="font-size: 10pt">December 31, 2025<sup id="xdx_F4F_zkh9jHhoCuVj">(1)</sup></span></td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">3,620</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pn3n3_maLOLLPzo30_zqAR4mI58n5a" style="vertical-align: bottom; background-color: White"> <td>December 31, 2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,376</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_pn3n3_maLOLLPzo30_zwZnGfCAalWc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>December 31, 2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,588</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_pn3n3_maLOLLPzo30_zYvGHJjn5BEe" style="vertical-align: bottom; background-color: White"> <td>December 31, 2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,695</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_pn3n3_maLOLLPzo30_zEFH3N0DH6x3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>December 31, 2029</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,443</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_ecustom--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFour_pn3n3_maLOLLPzo30_zWu1PjAOhiZc" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Thereafter</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">15,883</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_pn3n3_mtLOLLPzo30_zHyo6Cgxyhw" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total lease payments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">34,605</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iI_pn3n3_zdaZcIKetfJg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less imputed interest</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">9,797</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--OperatingLeaseLiability_iI_pn3n3_zSLIXzrEFUjb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total operating lease liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">24,808</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"><sup id="xdx_F05_zs4JP9fBiqR4">(1)</sup></td><td id="xdx_F11_z5nJsf42QGr2" style="text-align: justify">Represents scheduled payments for the remaining nine-month period ending December 31, 2025.</td> </tr></table> <p id="xdx_8A3_zi5lwQ2XpDfi" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <p id="xdx_89D_eus-gaap--LeaseCostTableTextBlock_zUyvJ4GJGhi4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span><span id="xdx_8B4_zTz3JzSBH7o7">SCHEDULE OF LEASE COST</span></span></span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center"><p style="margin-top: 0; margin-bottom: 0">For The Three Months Ended</p> <p style="margin-top: 0; margin-bottom: 0">March 31,</p></td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid">Lease cost</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid">Classification</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2025</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2024</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 29%; text-align: left">Operating lease cost</td><td style="width: 2%"> </td> <td style="width: 29%; text-align: left">Cost of goods sold</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--OperatingLeaseCost_pn3n3_c20250101__20250331__us-gaap--IncomeStatementLocationAxis__us-gaap--CostOfSalesMember_z93SXQN3aJpk" style="width: 16%; text-align: right" title="Operating lease cost">627</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--OperatingLeaseCost_pn3n3_c20240101__20240331__us-gaap--IncomeStatementLocationAxis__us-gaap--CostOfSalesMember_zjO9TzsIS3y4" style="width: 16%; text-align: right" title="Operating lease cost">350</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Operating lease cost</td><td> </td> <td style="text-align: left">Research and development</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--OperatingLeaseCost_pn3n3_c20250101__20250331__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_zOuROkbtd9gf" style="text-align: right" title="Operating lease cost">40</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--OperatingLeaseCost_pn3n3_c20240101__20240331__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_zqILG6HGuVH6" style="text-align: right" title="Operating lease cost">23</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Operating lease cost</td><td> </td> <td style="text-align: left">General and administration</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--OperatingLeaseCost_pn3n3_c20250101__20250331__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_z0mZHroWuRde" style="text-align: right" title="Operating lease cost">817</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--OperatingLeaseCost_pn3n3_c20240101__20240331__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_zA5ETGx6hN43" style="text-align: right" title="Operating lease cost">270</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Operating lease cost</td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: left; padding-bottom: 2.5pt">Selling and marketing</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98E_eus-gaap--OperatingLeaseCost_pn3n3_c20250101__20250331__us-gaap--IncomeStatementLocationAxis__us-gaap--SellingAndMarketingExpenseMember_z1I0cjbrfoTd" style="border-bottom: Black 2.5pt double; text-align: right" title="Operating lease cost">13</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98E_eus-gaap--OperatingLeaseCost_pn3n3_c20240101__20240331__us-gaap--IncomeStatementLocationAxis__us-gaap--SellingAndMarketingExpenseMember_zxC47H8ZSwY6" style="border-bottom: Black 2.5pt double; text-align: right" title="Operating lease cost">12</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total lease cost</td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98F_eus-gaap--OperatingLeaseCost_pn3n3_c20250101__20250331_zHUtcqMhgiVd" style="border-bottom: Black 2.5pt double; text-align: right" title="Operating lease cost">1,497</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_982_eus-gaap--OperatingLeaseCost_pn3n3_c20240101__20240331_zDmQAPAULHMk" style="border-bottom: Black 2.5pt double; text-align: right" title="Operating lease cost">655</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A4_zJYIEVa3hA1g" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0">All lease costs included in the schedule above are fixed.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 5 - Commitments and Contingencies (continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><i>Financing Leases</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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 <span id="xdx_90A_eus-gaap--LesseeFinanceLeaseTermOfContract1_iI_dtY_c20250331__srt--RangeAxis__srt--MinimumMember_zb6iy5zepegj" title="Finance lease term">3</span>-<span id="xdx_90F_eus-gaap--LesseeFinanceLeaseTermOfContract1_iI_dtY_c20250331__srt--RangeAxis__srt--MaximumMember_zQ0cBOLmy1i3" title="Finance lease term">5</span> years. The leased assets are recognized in property plant &amp; equipment.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><b> </b></p> <p id="xdx_89B_ecustom--ScheduleOfBreakoutOfFinanceLeasesTableTextBlock_zay6DxLidAP" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0">The following table presents the breakout of the financing leases as of:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><b><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span><span id="xdx_8B6_zuLAi5lpAvul">SCHEDULE OF BREAKOUT OF FINANCE LEASES</span></span><span style="color: Black"> </span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></b></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_498_20250331_zNUNbfqHVpph" style="border-bottom: Black 1pt solid; text-align: center"><p style="margin-top: 0; margin-bottom: 0">March 31,</p> <p style="margin-top: 0; margin-bottom: 0">2025</p></td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20241231_zU9B0LwLTgPb" style="border-bottom: Black 1pt solid; text-align: center"><p style="margin-top: 0; margin-bottom: 0">December 31,</p> <p style="margin-top: 0; margin-bottom: 0">2024</p></td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_40C_ecustom--FinanceLeaseRightOfUseAssets_iI_pn3n3_z6l56gP4qYo1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left; padding-bottom: 1pt">Finance lease right-of-use assets</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">112</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">121</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--FinanceLeaseLiabilityCurrent_iI_pn3n3_z3DoRGIaK1Hb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Short-term finance lease liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">48</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">47</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--FinanceLeaseLiabilityNoncurrent_iI_pn3n3_zezdpC7tS15b" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Long-term finance lease liabilities</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">51</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">63</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--FinanceLeaseLiability_iI_pn3n3_zyG0jUT7gUO3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total finance lease liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">99</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">110</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Weighted average remaining lease term</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-size: 10pt"><span id="xdx_90A_eus-gaap--FinanceLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20250331_zFJybFZ9ip91" title="Weighted average remaining lease term">2.59</span> years</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-size: 10pt"><span id="xdx_90F_eus-gaap--FinanceLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20241231_z637oHJSVHn7" title="Weighted average remaining lease term">2.78</span> years</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Weighted average discount rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--FinanceLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_c20250331_zeHtNPSqwftf" title="Weighted average discount rate">5.2</span></td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_eus-gaap--FinanceLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_c20241231_zTTpT6eewx3h" title="Weighted average discount rate">5.2</span></td><td style="text-align: left">%</td></tr> </table> <p id="xdx_8A6_zRY6c6R6tgZ4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <p id="xdx_897_eus-gaap--FinanceLeaseLiabilityMaturityTableTextBlock_zZj7i5vZ2k83" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0">At March 31, 2025, the future minimum lease payments under these financing leases are as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span><span id="xdx_8B7_z5Mka4X8gQi8">SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS UNDER FINANCE LEASES</span></span> </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="vertical-align: bottom"> <td>Fiscal Years Ending</td><td> </td> <td colspan="2" id="xdx_497_20250331_zIfo4zXjerx6"> </td><td> </td></tr> <tr id="xdx_402_eus-gaap--FinanceLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_pn3n3_maFLLPDzyw4_zzuDcVnqiD12" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%"><span style="font-size: 10pt">December 31, 2025<sup id="xdx_F4B_zvimy735Bdsi">(1)</sup></span></td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">39</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--FinanceLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pn3n3_maFLLPDzyw4_z9udsOVpeSad" style="vertical-align: bottom; background-color: White"> <td>December 31, 2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">37</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearTwo_iI_pn3n3_maFLLPDzyw4_zw5tLedEENh5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>December 31, 2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">18</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearThree_iI_pn3n3_maFLLPDzyw4_zohSQVpDMpu6" style="vertical-align: bottom; background-color: White"> <td>December 31, 2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--FinanceLeaseLiabilityPaymentsDueAfterYearFour_iI_pn3n3_maFLLPDzyw4_zTNIxNKzvWY9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">December 31, 2029</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--FinanceLeaseLiabilityPaymentsDue_iTI_pn3n3_mtFLLPDzyw4_zDQ47H3EXZG3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total lease payments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">105</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--FinanceLeaseLiabilityUndiscountedExcessAmount_iI_pn3n3_z91mwW27J9X9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less imputed interest</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--FinanceLeaseLiability_iI_pn3n3_zcfLgL3QZt72" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total financing lease liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">99</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"><sup id="xdx_F08_zhcnKCrHB1Oj">(1)</sup></td><td id="xdx_F1A_zzlEoBS2Bxsk" style="text-align: justify">Represents scheduled payments for the remaining nine-month period ending December 31, 2025.</td> </tr></table> <p id="xdx_8AD_zqrudVeK0Lii" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin: 0pt 0pt 0pt 0"><i>Other Contingencies</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">In March 2025, the Company has agreed to pay LithiumHub a total of $<span id="xdx_90E_ecustom--IncreaseDecreaseInAccruedSettlement_pn5n6_c20250301__20250331__us-gaap--TypeOfArrangementAxis__custom--SettlementAgreementMember_zXggUGZL3NS3" title="Accrued settlement">2.5</span> million, of which approximately $<span id="xdx_905_ecustom--IncreaseDecreaseInAccruedSettlement_pn5n6_c20250301__20250331__us-gaap--TypeOfArrangementAxis__custom--SettlementAgreementMember__us-gaap--AwardDateAxis__custom--TwoThousandTwentyFiveMember_z3T0yGPDakOe" title="Accrued settlement">0.6</span> million will be paid in 2025, and approximately $<span id="xdx_90C_ecustom--IncreaseDecreaseInAccruedSettlement_pn5n6_c20250301__20250331__us-gaap--TypeOfArrangementAxis__custom--SettlementAgreementMember__us-gaap--AwardDateAxis__custom--TwoThousandTwentySixMember_za478XGwdXBj" title="Accrued settlement">1.9</span> million will be paid in 2026, in exchange for a non-exclusive license in LithiumHub Technologies, LLC’s patents rights relating to the Patents-in-Suit. In accordance with the Settlement Agreement, the Company and LithiumHub will terminate the ongoing patent litigation between them. The Settlement Agreement includes no admission of infringement by the Company.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> 111000 309000 230000 23000 21000 0.03 0.024 64000 45000 0.030 0.25 50000 <p id="xdx_89C_ecustom--ScheduleOfBreakoutOfOperatingLeasesTableTextBlock_zB1aazU9vSQ" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">The following table presents the breakout of the operating leases as of:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span><span id="xdx_8B8_zLp4IwwRtLJ5">SCHEDULE OF BREAKOUT OF OPERATING LEASES</span></span> </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20250331_zkmLRzlVaxdk" style="border-bottom: Black 1pt solid; text-align: center"><p style="margin-top: 0; margin-bottom: 0">March 31, 2025</p></td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49C_20241231_z4f0e784Mt64" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_40B_eus-gaap--OperatingLeaseRightOfUseAsset_iI_pn3n3_zhuYztkPUdq9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left; padding-bottom: 1pt">Operating lease right-of-use assets</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">19,079</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">19,737</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--OperatingLeaseLiabilityCurrent_iI_pn3n3_zmyovu1XANa8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Short-term operating lease liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,985</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,926</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_pn3n3_zs5i9JgIGW5b" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Long-term operating lease liabilities</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">21,823</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">22,588</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--OperatingLeaseLiability_iI_pn3n3_zag2ZThS0mu9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total operating lease liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">24,808</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">25,514</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Weighted average remaining lease term</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-size: 10pt"><span id="xdx_907_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20250331_zDndGc6DvK35" title="Weighted average remaining lease term">8.30</span> years</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-size: 10pt"><span id="xdx_90E_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20241231_zLYfHm81b5Pl" title="Weighted average remaining lease term">8.46</span> years</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Weighted average discount rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_908_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_c20250331_z5i9gxKKqhn2" title="Weighted average discount rate">7.88</span></td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90C_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_c20241231_zyuq7OppFT3l" title="Weighted average discount rate">7.86</span></td><td style="text-align: left">%</td></tr> </table> 19079000 19737000 2985000 2926000 21823000 22588000 24808000 25514000 P8Y3M18D P8Y5M15D 0.0788 0.0786 <p id="xdx_898_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_zbb4gFVDBdXa" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0">At March 31, 2025, the future minimum lease payments under these operating leases are as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span><span id="xdx_8B4_z6BlVWwDuf9c">SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS UNDER OPERATING LEASES</span></span> </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="vertical-align: bottom"> <td>Fiscal Years Ending</td><td> </td> <td colspan="2" id="xdx_496_20250331_z98NULAj8SQ9"> </td><td> </td></tr> <tr id="xdx_400_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_pn3n3_maLOLLPzo30_zpb1gEcs1gkg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%"><span style="font-size: 10pt">December 31, 2025<sup id="xdx_F4F_zkh9jHhoCuVj">(1)</sup></span></td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">3,620</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pn3n3_maLOLLPzo30_zqAR4mI58n5a" style="vertical-align: bottom; background-color: White"> <td>December 31, 2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,376</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_pn3n3_maLOLLPzo30_zwZnGfCAalWc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>December 31, 2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,588</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_pn3n3_maLOLLPzo30_zYvGHJjn5BEe" style="vertical-align: bottom; background-color: White"> <td>December 31, 2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,695</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_pn3n3_maLOLLPzo30_zEFH3N0DH6x3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>December 31, 2029</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,443</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_ecustom--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFour_pn3n3_maLOLLPzo30_zWu1PjAOhiZc" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Thereafter</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">15,883</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_pn3n3_mtLOLLPzo30_zHyo6Cgxyhw" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total lease payments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">34,605</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iI_pn3n3_zdaZcIKetfJg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less imputed interest</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">9,797</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--OperatingLeaseLiability_iI_pn3n3_zSLIXzrEFUjb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total operating lease liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">24,808</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"><sup id="xdx_F05_zs4JP9fBiqR4">(1)</sup></td><td id="xdx_F11_z5nJsf42QGr2" style="text-align: justify">Represents scheduled payments for the remaining nine-month period ending December 31, 2025.</td> </tr></table> 3620000 4376000 3588000 3695000 3443000 15883000 34605000 9797000 24808000 <p id="xdx_89D_eus-gaap--LeaseCostTableTextBlock_zUyvJ4GJGhi4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span><span id="xdx_8B4_zTz3JzSBH7o7">SCHEDULE OF LEASE COST</span></span></span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center"><p style="margin-top: 0; margin-bottom: 0">For The Three Months Ended</p> <p style="margin-top: 0; margin-bottom: 0">March 31,</p></td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid">Lease cost</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid">Classification</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2025</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2024</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 29%; text-align: left">Operating lease cost</td><td style="width: 2%"> </td> <td style="width: 29%; text-align: left">Cost of goods sold</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--OperatingLeaseCost_pn3n3_c20250101__20250331__us-gaap--IncomeStatementLocationAxis__us-gaap--CostOfSalesMember_z93SXQN3aJpk" style="width: 16%; text-align: right" title="Operating lease cost">627</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--OperatingLeaseCost_pn3n3_c20240101__20240331__us-gaap--IncomeStatementLocationAxis__us-gaap--CostOfSalesMember_zjO9TzsIS3y4" style="width: 16%; text-align: right" title="Operating lease cost">350</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Operating lease cost</td><td> </td> <td style="text-align: left">Research and development</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--OperatingLeaseCost_pn3n3_c20250101__20250331__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_zOuROkbtd9gf" style="text-align: right" title="Operating lease cost">40</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--OperatingLeaseCost_pn3n3_c20240101__20240331__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_zqILG6HGuVH6" style="text-align: right" title="Operating lease cost">23</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Operating lease cost</td><td> </td> <td style="text-align: left">General and administration</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--OperatingLeaseCost_pn3n3_c20250101__20250331__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_z0mZHroWuRde" style="text-align: right" title="Operating lease cost">817</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--OperatingLeaseCost_pn3n3_c20240101__20240331__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_zA5ETGx6hN43" style="text-align: right" title="Operating lease cost">270</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Operating lease cost</td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: left; padding-bottom: 2.5pt">Selling and marketing</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98E_eus-gaap--OperatingLeaseCost_pn3n3_c20250101__20250331__us-gaap--IncomeStatementLocationAxis__us-gaap--SellingAndMarketingExpenseMember_z1I0cjbrfoTd" style="border-bottom: Black 2.5pt double; text-align: right" title="Operating lease cost">13</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98E_eus-gaap--OperatingLeaseCost_pn3n3_c20240101__20240331__us-gaap--IncomeStatementLocationAxis__us-gaap--SellingAndMarketingExpenseMember_zxC47H8ZSwY6" style="border-bottom: Black 2.5pt double; text-align: right" title="Operating lease cost">12</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total lease cost</td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98F_eus-gaap--OperatingLeaseCost_pn3n3_c20250101__20250331_zHUtcqMhgiVd" style="border-bottom: Black 2.5pt double; text-align: right" title="Operating lease cost">1,497</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_982_eus-gaap--OperatingLeaseCost_pn3n3_c20240101__20240331_zDmQAPAULHMk" style="border-bottom: Black 2.5pt double; text-align: right" title="Operating lease cost">655</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 627000 350000 40000 23000 817000 270000 13000 12000 1497000 655000 P3Y P5Y <p id="xdx_89B_ecustom--ScheduleOfBreakoutOfFinanceLeasesTableTextBlock_zay6DxLidAP" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0">The following table presents the breakout of the financing leases as of:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><b><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span><span id="xdx_8B6_zuLAi5lpAvul">SCHEDULE OF BREAKOUT OF FINANCE LEASES</span></span><span style="color: Black"> </span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></b></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_498_20250331_zNUNbfqHVpph" style="border-bottom: Black 1pt solid; text-align: center"><p style="margin-top: 0; margin-bottom: 0">March 31,</p> <p style="margin-top: 0; margin-bottom: 0">2025</p></td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20241231_zU9B0LwLTgPb" style="border-bottom: Black 1pt solid; text-align: center"><p style="margin-top: 0; margin-bottom: 0">December 31,</p> <p style="margin-top: 0; margin-bottom: 0">2024</p></td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_40C_ecustom--FinanceLeaseRightOfUseAssets_iI_pn3n3_z6l56gP4qYo1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left; padding-bottom: 1pt">Finance lease right-of-use assets</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">112</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">121</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--FinanceLeaseLiabilityCurrent_iI_pn3n3_z3DoRGIaK1Hb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Short-term finance lease liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">48</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">47</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--FinanceLeaseLiabilityNoncurrent_iI_pn3n3_zezdpC7tS15b" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Long-term finance lease liabilities</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">51</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">63</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--FinanceLeaseLiability_iI_pn3n3_zyG0jUT7gUO3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total finance lease liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">99</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">110</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Weighted average remaining lease term</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-size: 10pt"><span id="xdx_90A_eus-gaap--FinanceLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20250331_zFJybFZ9ip91" title="Weighted average remaining lease term">2.59</span> years</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-size: 10pt"><span id="xdx_90F_eus-gaap--FinanceLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20241231_z637oHJSVHn7" title="Weighted average remaining lease term">2.78</span> years</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Weighted average discount rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--FinanceLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_c20250331_zeHtNPSqwftf" title="Weighted average discount rate">5.2</span></td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_eus-gaap--FinanceLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_c20241231_zTTpT6eewx3h" title="Weighted average discount rate">5.2</span></td><td style="text-align: left">%</td></tr> </table> 112000 121000 48000 47000 51000 63000 99000 110000 P2Y7M2D P2Y9M10D 0.052 0.052 <p id="xdx_897_eus-gaap--FinanceLeaseLiabilityMaturityTableTextBlock_zZj7i5vZ2k83" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0">At March 31, 2025, the future minimum lease payments under these financing leases are as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span><span id="xdx_8B7_z5Mka4X8gQi8">SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS UNDER FINANCE LEASES</span></span> </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="vertical-align: bottom"> <td>Fiscal Years Ending</td><td> </td> <td colspan="2" id="xdx_497_20250331_zIfo4zXjerx6"> </td><td> </td></tr> <tr id="xdx_402_eus-gaap--FinanceLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_pn3n3_maFLLPDzyw4_zzuDcVnqiD12" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%"><span style="font-size: 10pt">December 31, 2025<sup id="xdx_F4B_zvimy735Bdsi">(1)</sup></span></td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">39</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--FinanceLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pn3n3_maFLLPDzyw4_z9udsOVpeSad" style="vertical-align: bottom; background-color: White"> <td>December 31, 2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">37</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearTwo_iI_pn3n3_maFLLPDzyw4_zw5tLedEENh5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>December 31, 2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">18</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearThree_iI_pn3n3_maFLLPDzyw4_zohSQVpDMpu6" style="vertical-align: bottom; background-color: White"> <td>December 31, 2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--FinanceLeaseLiabilityPaymentsDueAfterYearFour_iI_pn3n3_maFLLPDzyw4_zTNIxNKzvWY9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">December 31, 2029</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--FinanceLeaseLiabilityPaymentsDue_iTI_pn3n3_mtFLLPDzyw4_zDQ47H3EXZG3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total lease payments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">105</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--FinanceLeaseLiabilityUndiscountedExcessAmount_iI_pn3n3_z91mwW27J9X9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less imputed interest</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--FinanceLeaseLiability_iI_pn3n3_zcfLgL3QZt72" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total financing lease liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">99</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"><sup id="xdx_F08_zhcnKCrHB1Oj">(1)</sup></td><td id="xdx_F1A_zzlEoBS2Bxsk" style="text-align: justify">Represents scheduled payments for the remaining nine-month period ending December 31, 2025.</td> </tr></table> 39000 37000 18000 9000 2000 105000 6000 99000 2500000 600000 1900000 <p id="xdx_805_eus-gaap--DebtDisclosureTextBlock_zAOV9pJpMb5a" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 6 - <span id="xdx_82C_z3L1fVgY9Qx5">LONG TERM DEBT</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><b><span style="text-decoration: underline">Term Loan Agreement</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">As of March 31, 2025, the Company had an outstanding Term Loan under a Term Loan, Guarantee and Security Agreement (the “Term Loan Agreement”), dated October 7, 2022, with EICF Agent LLC, as agent, and certain lenders. The Term Loan matures on October 7, 2027 and amortizes at a rate of <span id="xdx_901_ecustom--DebtInstrumentAmortizationPercentage_pid_dp_uPure_c20221007__20221007__us-gaap--CreditFacilityAxis__custom--SeniorSecuredTermLoanFacilityMember__us-gaap--TypeOfArrangementAxis__custom--TermLoanAgreementMember_z2nDONF55iz6" title="Debt instrument, amortization percentage">5</span>% per annum beginning in October 2024.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">Prior to any amendments, the Term Loan accrues interest based on the Company’s senior leverage ratio. From inception through September 30, 2024, interest accrued at a per annum rate equal to adjusted SOFR (subject to a floor of 1.0%) plus <span id="xdx_907_ecustom--DebtInstrumentBasisSpreadOnVariableRatePayableInCash_pid_dp_c20240101__20240930__srt--StatementScenarioAxis__custom--AfterApril12023UntilOctober12024Member__us-gaap--CreditFacilityAxis__custom--SeniorSecuredTermLoanFacilityMember__us-gaap--TypeOfArrangementAxis__custom--TermLoanAgreementMember__us-gaap--DebtInstrumentAxis__us-gaap--SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember_zUIpSfyNEo7k" title="Variable rate, payable in kind">7.0</span>% payable in cash, plus an additional <span id="xdx_90B_ecustom--DebtInstrumentBasisSpreadOnVariableRatePayableInKind_pid_dp_uPure_c20240101__20240930__srt--StatementScenarioAxis__custom--AfterApril12023UntilOctober12024Member__us-gaap--CreditFacilityAxis__custom--SeniorSecuredTermLoanFacilityMember__us-gaap--TypeOfArrangementAxis__custom--TermLoanAgreementMember__us-gaap--DebtInstrumentAxis__us-gaap--SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember__srt--RangeAxis__srt--MinimumMember_zDAZjaKTVDN1" title="Variable rate, payable in kind">4.5</span>% to <span id="xdx_90E_ecustom--DebtInstrumentBasisSpreadOnVariableRatePayableInKind_pid_dp_c20240101__20240930__srt--StatementScenarioAxis__custom--AfterApril12023UntilOctober12024Member__us-gaap--CreditFacilityAxis__custom--SeniorSecuredTermLoanFacilityMember__us-gaap--TypeOfArrangementAxis__custom--TermLoanAgreementMember__us-gaap--DebtInstrumentAxis__us-gaap--SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember__srt--RangeAxis__srt--MaximumMember_zy1tHPvcWiq5" title="Variable rate, payable in kind">6.5</span>% payable in kind (“PIK”), depending on the Company’s senior leverage ratio. Effective April 1, 2024, interest payable to lenders subject to the regulations of the U.S. Small Business Administration (with $<span id="xdx_902_eus-gaap--DebtInstrumentFaceAmount_iI_pn3n3_c20240401_zRljlqHL9E22" title="Outstanding principal amount">30,846</span> of principal outstanding as of that date) is limited to <span id="xdx_908_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20240401_z5WnPUbAEzvk" title="Debt instrument interest rate">14.0</span>% per annum, excluding default interest permitted under applicable SBA regulations. From October 1, 2024 through March 31, 2025, interest on the non-SBA regulated portion continued to accrue at adjusted SOFR plus <span id="xdx_900_ecustom--DebtInstrumentBasisSpreadOnVariableRatePayableInCash_pid_dp_c20241001__20250331__us-gaap--CreditFacilityAxis__custom--SeniorSecuredTermLoanFacilityMember__us-gaap--TypeOfArrangementAxis__custom--TermLoanAgreementMember__us-gaap--DebtInstrumentAxis__us-gaap--SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember_zoPSrhCdJ1E7" title="Variable rate, payable in kind">7.0</span>% payable in cash, and <span id="xdx_901_ecustom--DebtInstrumentBasisSpreadOnVariableRatePayableInKind_pid_dp_uPure_c20241001__20250331__us-gaap--CreditFacilityAxis__custom--SeniorSecuredTermLoanFacilityMember__us-gaap--TypeOfArrangementAxis__custom--TermLoanAgreementMember__us-gaap--DebtInstrumentAxis__us-gaap--SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember__srt--RangeAxis__srt--MinimumMember_zDaeMnZZOv03" title="Variable rate, payable in kind">4.5</span>% to <span id="xdx_90E_ecustom--DebtInstrumentBasisSpreadOnVariableRatePayableInKind_pid_dp_c20241001__20250331__us-gaap--CreditFacilityAxis__custom--SeniorSecuredTermLoanFacilityMember__us-gaap--TypeOfArrangementAxis__custom--TermLoanAgreementMember__us-gaap--DebtInstrumentAxis__us-gaap--SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember__srt--RangeAxis__srt--MaximumMember_zttL75N2J5vg" title="Variable rate, payable in kind">6.5</span>% payable in kind. Beginning April 1, 2025, interest on all outstanding balances will be payable entirely in cash, at a rate equal to adjusted SOFR plus a margin ranging from <span id="xdx_90D_ecustom--DebtInstrumentBasisSpreadOnVariableRatePayableInCash_pid_dp_uPure_c20241001__20250331__us-gaap--CreditFacilityAxis__custom--SeniorSecuredTermLoanFacilityMember__us-gaap--TypeOfArrangementAxis__custom--TermLoanAgreementMember__us-gaap--DebtInstrumentAxis__us-gaap--SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember__srt--RangeAxis__srt--MinimumMember_zd8Kg4Z6JdR1" title="Variable rate, payable in cash">11.5</span>% to <span id="xdx_90C_ecustom--DebtInstrumentBasisSpreadOnVariableRatePayableInCash_pid_dp_c20241001__20250331__us-gaap--CreditFacilityAxis__custom--SeniorSecuredTermLoanFacilityMember__us-gaap--TypeOfArrangementAxis__custom--TermLoanAgreementMember__us-gaap--DebtInstrumentAxis__us-gaap--SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember__srt--RangeAxis__srt--MaximumMember_zbmU5FztIYxb" title="Variable rate, payable in cash">13.5</span>%, depending on the Company’s senior leverage ratio.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">During the three months ended March 31, 2025 and 2024, the Company recognized interest expense of $<span id="xdx_90F_eus-gaap--InterestExpenseDebtExcludingAmortization_pn3n3_c20250101__20250331__us-gaap--LongtermDebtTypeAxis__us-gaap--SeniorNotesMember__us-gaap--TypeOfArrangementAxis__custom--TermLoanAgreementMember_zSPA5G8G3o04" title="Interest expense">3,579</span> and $<span id="xdx_906_eus-gaap--InterestExpenseDebtExcludingAmortization_pn3n3_c20240101__20240331__us-gaap--LongtermDebtTypeAxis__us-gaap--SeniorNotesMember__us-gaap--TypeOfArrangementAxis__custom--TermLoanAgreementMember_zc1ey1cTHvkk" title="Interest expense">3,701</span>, respectively. Amortization of the debt issuance costs amounted to $<span id="xdx_908_eus-gaap--AmortizationOfFinancingCosts_pn3n3_c20250101__20250331__us-gaap--LongtermDebtTypeAxis__us-gaap--SeniorNotesMember__us-gaap--TypeOfArrangementAxis__custom--TermLoanAgreementMember_zRsrlsObF12k" title="Amortization of debt issuance costs">1,095</span> and $<span id="xdx_903_eus-gaap--AmortizationOfFinancingCosts_pn3n3_c20240101__20240331__us-gaap--LongtermDebtTypeAxis__us-gaap--SeniorNotesMember__us-gaap--TypeOfArrangementAxis__custom--TermLoanAgreementMember_zpgQQfDULDv1" title="Amortization of debt issuance costs">894</span>, respectively, for the same periods. As of December 31, 2024, the carrying value was $<span id="xdx_904_eus-gaap--LongTermDebt_iI_pn3n3_c20241231__us-gaap--LongtermDebtTypeAxis__us-gaap--SeniorNotesMember__us-gaap--TypeOfArrangementAxis__custom--TermLoanAgreementMember_z7H7X5VeS0ve" title="Long term debt">29,646</span>, consisting of $<span id="xdx_907_eus-gaap--DebtInstrumentFaceAmount_iI_pn3n3_c20241231__us-gaap--LongtermDebtTypeAxis__us-gaap--SeniorNotesMember__us-gaap--TypeOfArrangementAxis__custom--TermLoanAgreementMember_zTScliUi0Dbk" title="Loan amount">69,974</span> in principal, plus $<span id="xdx_906_eus-gaap--PaidInKindInterest_pn3n3_c20240101__20241231__us-gaap--LongtermDebtTypeAxis__us-gaap--SeniorNotesMember__us-gaap--TypeOfArrangementAxis__custom--TermLoanAgreementMember_zDUSpYNEh0Tj" title="Paid in kind interest">15,938</span> in capitalized PIK interest, net of $<span id="xdx_901_eus-gaap--DeferredFinanceCostsNet_iI_pn3n3_c20241231__us-gaap--LongtermDebtTypeAxis__us-gaap--SeniorNotesMember__us-gaap--TypeOfArrangementAxis__custom--TermLoanAgreementMember_zvgrVhCIM9P7" title="Unamortized debt discount">56,266</span> in unamortized debt discount.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">The obligations under the Term Loan Agreement are secured by a first-priority lien on substantially all of the Company’s assets, including certain mortgaged properties.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b></b></span><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 6 - Long Term Debt (continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><i>Financial Covenants</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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 December 31, 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, May 30, 2024, June 28, 2024, July 31, 2024, August 30, 2024, September 30, 2024, October 31, 2024, November 30, 2024 and December 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, September 30, 2024, and December 31, 2024 and the fiscal months ended April 30, 2024, May 31, 2024 July 31, 2024, August 31, 2024, October 31, 2024 and November 30, 2024, as applicable.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">On February 2025, in connection with the Securities Purchase Agreement, the Company entered into the Fifth Amendment to the Term Loan. This amendment extended the loan’s maturity date by one year to October 2027 and deferred all principal and interest payments until April 2026. Additionally, the amendment postponed certain covenant requirements, significantly reducing the likelihood of a breach and the lender’s ability to accelerate repayment based on prior noncompliance, thereby allowing the Company to reclassify the debt as long-term as of December 31, 2024.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">In evaluating the accounting treatment of the Fifth Amendment, the Company applied the guidance under ASC 470-50, “Debt—Modifications and Extinguishments.” Based on the analysis, the Company concluded that the present value of the cash flows under the Amended Term Loan differed by less than 10% from the present value of the remaining cash flows under the original Term Loan. Consequently, the amendment met the criteria for classification as a debt modification.</p> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_891_eus-gaap--ScheduleOfMaturitiesOfLongTermDebtTableTextBlock_zb2llBHbJcM1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">At March 31, 2025 the future debt maturities are as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="display: none"><span id="xdx_8BE_zvJ4E9TpTjZ7">SCHEDULE OF FUTURE DEBT MATURITIES</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; text-align: left">For Year Ended December 31,</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20250331_zsCIwir6oOZ4"> </td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_408_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_pn3n3_maLTDMRzRKL_zLDjvq7Xzc5j" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1020">-</span></td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_pn3n3_maLTDMRzRKL_zCLG60CCOize" style="vertical-align: bottom; background-color: White"> <td style="width: 80%; text-align: left">2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">2,813</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree_iI_pn3n3_maLTDMRzRKL_z1Jh1Ktsey69" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">2027</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">98,342</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_ecustom--LongTermDebtMaturitiesRepaymentsOfPrincipal_iTI_pn3n3_mtLTDMRzRKL_maLTDzvhW_z8OWN02UVTQ1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total debt</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">101,155</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_ecustom--EstimatedInterestPaidinkind_iI_pn3n3_maLTDzvhW_zByFoSZrmb3g" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less: Estimated interest paid-in-kind</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(11,663</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--LongTermDebt_iTI_pn3n3_mtLTDzvhW_zTbdQbK8eMkd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Total debt</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right">89,492</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--DebtInstrumentUnamortizedDiscount_iNI_pn3n3_di_zzOLYXN6Hw1e" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left">Less: Unamortized debt discount costs</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(55,868</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--DebtInstrumentCarryingAmount_iI_pn3n3_zyeJrYgDLYi8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Total carrying amount</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">33,624</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--LongTermDebtCurrent_iNI_pn3n3_di_zZEpPaBcUUX9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less: Current portion of debt</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1036">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--LongTermDebtNoncurrent_iI_pn3n3_zmPfW0u2wtd2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total long-term debt</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">33,624</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8AC_zUdXEiLk8k69" style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp. </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"></p> 0.05 0.070 0.045 0.065 30846000 0.140 0.070 0.045 0.065 0.115 0.135 3579000 3701000 1095000 894000 29646000 69974000 15938000 56266000 <p id="xdx_891_eus-gaap--ScheduleOfMaturitiesOfLongTermDebtTableTextBlock_zb2llBHbJcM1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">At March 31, 2025 the future debt maturities are as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="display: none"><span id="xdx_8BE_zvJ4E9TpTjZ7">SCHEDULE OF FUTURE DEBT MATURITIES</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; text-align: left">For Year Ended December 31,</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20250331_zsCIwir6oOZ4"> </td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_408_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_pn3n3_maLTDMRzRKL_zLDjvq7Xzc5j" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1020">-</span></td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_pn3n3_maLTDMRzRKL_zCLG60CCOize" style="vertical-align: bottom; background-color: White"> <td style="width: 80%; text-align: left">2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">2,813</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree_iI_pn3n3_maLTDMRzRKL_z1Jh1Ktsey69" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">2027</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">98,342</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_ecustom--LongTermDebtMaturitiesRepaymentsOfPrincipal_iTI_pn3n3_mtLTDMRzRKL_maLTDzvhW_z8OWN02UVTQ1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total debt</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">101,155</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_ecustom--EstimatedInterestPaidinkind_iI_pn3n3_maLTDzvhW_zByFoSZrmb3g" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less: Estimated interest paid-in-kind</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(11,663</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--LongTermDebt_iTI_pn3n3_mtLTDzvhW_zTbdQbK8eMkd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Total debt</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right">89,492</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--DebtInstrumentUnamortizedDiscount_iNI_pn3n3_di_zzOLYXN6Hw1e" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left">Less: Unamortized debt discount costs</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(55,868</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--DebtInstrumentCarryingAmount_iI_pn3n3_zyeJrYgDLYi8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Total carrying amount</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">33,624</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--LongTermDebtCurrent_iNI_pn3n3_di_zZEpPaBcUUX9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less: Current portion of debt</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1036">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--LongTermDebtNoncurrent_iI_pn3n3_zmPfW0u2wtd2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total long-term debt</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">33,624</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 2813000 98342000 101155000 -11663000 89492000 55868000 33624000 33624000 <p id="xdx_809_ecustom--LicenseAgreementDisclosureTextBlock_z5ZF4yyPEd01" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 7 - <span id="xdx_82E_zpXoatwGE63a">LICENSE AGREEMENT</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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 $<span id="xdx_90A_ecustom--LicensingFee_pn3n3_c20240729__20240729__us-gaap--TypeOfArrangementAxis__custom--LicenseAgreementMember_zsbFkbVIWiq5" title="Licensing fee">5,000</span> 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 $<span id="xdx_907_ecustom--PaymentOfQuarterlyLicenseFee_pn3n3_c20240729__20240729__us-gaap--TypeOfArrangementAxis__custom--LicenseAgreementMember_z41qvEsuy3Rf" title="Payment of quarterly license fee">25,000</span>. 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 $<span id="xdx_90A_ecustom--LicensingFee_pn3n3_c20240729__20240729__us-gaap--TypeOfArrangementAxis__custom--LicenseAgreementMember_zI08RLpycldk" title="Licensing fee">5,000</span> initial licensing fee is being recognized as revenue on a <span id="xdx_909_ecustom--InitialLicensingFeeRecognizedRevenueDescription_c20240729__20240729__us-gaap--TypeOfArrangementAxis__custom--LicenseAgreementMember_zM9qpfV8dmDi" title="Initial licensing fee recognized revenue description">straight-line basis over five years</span>. For the three months ended March 31, 2025, the Company has recorded $<span id="xdx_90F_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_c20250101__20250331__us-gaap--TypeOfArrangementAxis__custom--LicenseAgreementMember__us-gaap--ContractWithCustomerSalesChannelAxis__custom--LicenseFeeRevenueMember_z9QQ9eHiIuSf" title="Revenue">250</span> in revenue related to the amortization of the License Agreement and no royalty payments have been received or earned. As of March 31, 2025, the Company has recorded $<span id="xdx_90A_eus-gaap--DeferredRevenueCurrent_iI_pn3n3_c20250331__us-gaap--TypeOfArrangementAxis__custom--LicenseAgreementMember_zxrI0ZMmrUVi" title="Short term deferred revenue">1,000</span> in short-term deferred revenue and $<span id="xdx_909_eus-gaap--DeferredRevenueNoncurrent_iI_pn3n3_c20250331__us-gaap--TypeOfArrangementAxis__custom--LicenseAgreementMember_zIV66VEiiL2f" title="Long term deferred revenue">3,333</span> in long-term deferred revenue related to the license agreement. As of December 31, 2024, the Company has recorded $<span id="xdx_903_eus-gaap--DeferredRevenueCurrent_iI_pn3n3_c20241231__us-gaap--TypeOfArrangementAxis__custom--LicenseAgreementMember_zEmCUrBTUlG5" title="Short term deferred revenue">1,000</span> in short-term deferred revenue and $<span id="xdx_90F_eus-gaap--DeferredRevenueNoncurrent_iI_pn3n3_c20241231__us-gaap--TypeOfArrangementAxis__custom--LicenseAgreementMember_zZ5ORgjMXK1h" title="Long term deferred revenue">3,583</span> in long-term deferred revenue related to the License Agreement.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"> </span></p> 5000000 25000000 5000000 straight-line basis over five years 250000 1000000 3333000 1000000 3583000 <p id="xdx_802_eus-gaap--RelatedPartyTransactionsDisclosureTextBlock_z5s4FjmrBKKb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 8 - <span id="xdx_829_z7pM4icCTIE6">RELATED PARTY</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">On January 26, 2024 the Company entered into a convertible promissory note (the “January Note”) with a board member in the amount of $<span id="xdx_904_eus-gaap--ConvertibleNotesPayableCurrent_iI_pn3n3_c20240126__us-gaap--DebtInstrumentAxis__custom--JanuaryNoteMember_zJePOt1N1wOd" title="Promissory note">1,000</span>, or the January Principal Amount. Upon execution of the January Note and funding of the original principal sum, a payment of $<span id="xdx_90A_eus-gaap--DebtInstrumentFeeAmount_iI_pn3n3_c20240126__us-gaap--DebtInstrumentAxis__custom--JanuaryNoteMember_zIjcPs4e29fd" title="Loan fee amount">50</span> (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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">On February 27, 2024 the Company entered into a convertible promissory note (the “February Note”) with a board member in the amount of $<span id="xdx_905_eus-gaap--ConvertibleNotesPayableCurrent_iI_pn3n3_c20240227__us-gaap--DebtInstrumentAxis__custom--FebruaryNoteMember_zZOW65ixoDK6" title="Promissory note">1,700</span>, or the February Principal Amount. Upon execution of the February Note and funding of the original principal sum, a payment of $<span id="xdx_906_eus-gaap--DebtInstrumentFeeAmount_iI_pn3n3_c20240227__us-gaap--DebtInstrumentAxis__custom--FebruaryNoteMember_zcAYqWNb1fil" title="Loan fee amount">85</span> (the “February Loan Fee”) was fully earned as of the date of the February Note and was due and payable in full in cash on March 1, 2024. The Company paid the February Principal Amount and the February Loan Fee on March 1, 2024.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">Effective April 12, 2024, the Company entered into amendments to the employment agreements with its Chief Executive Officer, its Chief Revenue Officer and its Chief Commercial Officer (formerly the Company’s Chief Marketing Officer) to amend the terms of their annual equity compensation (the “Amended Employee Agreements”). The Amended Employee Agreements allow the Company to issue a combination of cash and equity awards on an annual basis up to a specified amount ($<span id="xdx_900_eus-gaap--StockIssuedDuringPeriodValueNewIssues_pn3n3_c20240412__20240412__srt--TitleOfIndividualAxis__srt--ChiefExecutiveOfficerMember_zErdIjMJxFgk" title="Shares issued value">1,532</span> for the Chief Executive Officer, $<span id="xdx_90A_eus-gaap--StockIssuedDuringPeriodValueNewIssues_pn3n3_c20240412__20240412__srt--TitleOfIndividualAxis__custom--ChiefRevenueOfficerMember_zjWPXFEiCpgb" title="Shares issued value">490</span> for the Chief Revenue Officer and $<span id="xdx_900_eus-gaap--StockIssuedDuringPeriodValueNewIssues_pn3n3_c20240412__20240412__srt--TitleOfIndividualAxis__custom--ChiefMarketingOfficerMember_z6S6L13Y9fzi" title="Shares issued value">236</span> for the Chief Commercial Officer), subject to approval and such other terms and conditions imposed by the compensation committee of the board of directors.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">On February 1, 2025, the Company appointed Dr. Vickram Singh, the Company’s former Senior Vice President of Technology, as its Chief Operating Officer pursuant to an employment agreement, dated February 1, 2025 (the “Employment Agreement”). Dr. Singh’s employment as the Company’s Chief Operating Officer commenced on February 4, 2025. The Employment Agreement provides for a three-year initial employment term, with automatic three-year renewal terms thereafter, subject to 90 days’ notice of nonrenewal by either party. The Employment Agreement also provides for an initial annual base salary of $<span id="xdx_90E_eus-gaap--SalariesAndWages_pn3n3_c20250201__20250201_zFUoehImCT54" title="Base salary">350,000</span> (the “Base Salary”) and a discretionary annual bonus of up to <span id="xdx_902_ecustom--PercentageOfSalariesAndWages_pid_dp_c20250201__20250201_zJhCv4Qla4e4" title="Percentage of base salary">65</span>% of the Base Salary.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp. </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p> 1000000 50000 1700000 85000 1532000 490000 236000 350000000 0.65 <p id="xdx_80C_ecustom--WarrantLiabilitiesDisclosureTextBlock_zMvtURpOOe06" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 9 - <span id="xdx_821_zm4TsIwhpODj">WARRANTS</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><b>Common Stock Warrants classified as Equity</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><i>Public Warrants</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">The Company’s Public Warrants are classified as equity and as of March 31, 2025 and December 31, 2024, there were <span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_pid_c20250101__20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--PublicWarrantsMember_zR9YsRIXIuX7" title="Warrants issued shares"><span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iI_pid_c20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--PublicWarrantsMember_zbn20uSGjywc" title="Warrants outstanding shares"><span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_pid_c20240101__20241231__us-gaap--ClassOfWarrantOrRightAxis__custom--PublicWarrantsMember_zoKHnTrJRuv8" title="Warrants issued shares"><span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iI_pid_c20241231__us-gaap--ClassOfWarrantOrRightAxis__custom--PublicWarrantsMember_zfS7TiTGb9gg" title="Warrants outstanding shares">1,046,948</span></span></span></span> Public Warrants issued and outstanding.</p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0pt 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">During the three months ended March 31, 2025 and 2024, <span id="xdx_901_eus-gaap--ProceedsFromWarrantExercises_pn3n3_dxL_c20250101__20250331_zAhuvvvLz8dh" title="Proceeds from exercise of public warrants::XDX::-"><span id="xdx_90F_eus-gaap--ProceedsFromWarrantExercises_pn3n3_dxL_c20240101__20240331_zbTMHjBzesg7" title="Proceeds from exercise of public warrants::XDX::-"><span style="-sec-ix-hidden: xdx2ixbrl1090"><span style="-sec-ix-hidden: xdx2ixbrl1092">no</span></span></span></span> public warrants were exercised.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0pt 0pt 0"><i>June 2023 Offering (Underwriter and Investor Warrants)</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">In connection with the entry into the underwriting agreement as further described in Note 11 of the financial statements, (the “June 2023 Offering”) the Company issued (i) underwriters warrants to purchase up to an aggregate of <span id="xdx_900_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pid_c20230620__us-gaap--StatementEquityComponentsAxis__custom--UnderwritersWarrantsMember_zvGkXBogUvS6" title="Common stock, shares issued">63,362</span> shares of common stock (the “Underwriters’ Warrants”) which are exercisable upon issuance and will expire on <span id="xdx_904_eus-gaap--WarrantsAndRightsOutstandingMaturityDate_iI_dd_c20230620__us-gaap--StatementEquityComponentsAxis__custom--UnderwritersWarrantsMember_zZ6zQOzCZKjf" title="Maturity date">June 20, 2028</span>. The initial exercise price of the Underwriters’ Warrants is $<span id="xdx_90E_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_uUSDPShares_c20230620__us-gaap--StatementEquityComponentsAxis__custom--UnderwritersWarrantsMember_zhmlmzyge5we" title="Warrant, exercise price">22.50</span> per share, which equals <span id="xdx_901_ecustom--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRightsPercentage_iI_pid_dp_uPure_c20230620__us-gaap--StatementEquityComponentsAxis__custom--UnderwritersWarrantsMember_zA5i4eObuL3g" title="Warrant excersie price, rate">125</span>% of the per share public offering price in the June 2023 Offering and (ii) warrants to purchase up to <span id="xdx_90F_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pid_c20230620__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember_zIfRPbAsS1s6" title="Warrants, shares">1,111,111</span> shares of common stock to the investors in the offering together with shares of common stock (the “Investor Warrants”), at the combined public offering price of $<span id="xdx_90F_eus-gaap--SharesIssuedPricePerShare_iI_pid_c20230620__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember_z0B7OZbYW8I3" title="Share issued, price share">18.00</span> per share of common stock and accompanying Investor Warrant, less underwriting discounts and commissions.</p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0pt 0pt 0"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">The Company also granted the underwriters a 45-day over-allotment option to purchase up to an additional <span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod_pid_c20230620__20230620__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--OverAllotmentOptionMember_zFK0VtkCqSk3" title="Options to purchase shares">166,667</span> shares of common stock and/or Investor Warrants to purchase up to <span id="xdx_908_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pid_c20230620__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--OverAllotmentOptionMember__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember_z3hzsErFaan6" title="Warrants, shares">166,667</span> shares of common stock at the public offering price per security, less underwriting discounts and commissions. The underwriters exercised their over-allotment option to purchase an additional <span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod_pid_c20230620__20230620__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--OverAllotmentOptionMember__srt--TitleOfIndividualAxis__custom--UnderwritersMember_zI7E3TAvYFQd" title="Options to purchase shares">156,112</span> shares of common stock and Investor Warrants to purchase up to <span id="xdx_907_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pid_c20230620__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember__srt--TitleOfIndividualAxis__custom--UnderwritersMember_zTruHGJNkeRe" title="Warrants to purchase common shares">156,112</span> shares of common stock. The Company accounts for the Investor Warrants issued in connection with the Offering in accordance with the guidance contained in ASC 815-40. Such guidance provides that because the Investor Warrants do not meet the criteria for equity treatment thereunder, each 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. It was determined that the Underwriters’ Warrants were not precluded from equity treatment and have been accounted for as such.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p id="xdx_894_ecustom--ScheduleofUnderwriterWarrantTableTextBlock_zCNQ9Eb0MIkk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">Underwriters’ Warrants:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span style="display: none"><span id="xdx_8B4_zlLvM0OcOHg">SCHEDULE OF UNDERWRITER WARRANTS</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_4BA_us-gaap--StatementClassOfStockAxis_custom--UnderwritersWarrantsMember_zRRSCfSAnYKa" style="border-bottom: Black 1pt solid; text-align: center">Common Stock Warrants</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_436_c20250101__20250331_eus-gaap--ClassOfWarrantOrRightOutstanding_iS_zt6oCJIPSBT" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%">Underwriters’ Warrants Outstanding, January 1, 2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">63,362</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_43E_c20250101__20250331_eus-gaap--ClassOfWarrantOrRightOutstanding_iS_zcR6ydcFxUI7" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Underwriters’ Warrants Outstanding, Beginning</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">63,362</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_ecustom--ClassOfWarrantOrRightIssued_zW9i341ANA6c" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt">Underwriters’ Warrants issued</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1120">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_43C_c20250101__20250331_eus-gaap--ClassOfWarrantOrRightOutstanding_iE_zHJ75jPDMlKd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Underwriters’ Warrants Outstanding, March 31, 2025</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">63,362</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr id="xdx_438_c20250101__20250331_eus-gaap--ClassOfWarrantOrRightOutstanding_iE_zssShB5a7NLk" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Underwriters’ Warrants Outstanding, Ending</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">63,362</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A2_zQgkjNyIz25b" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><b>Common Stock Warrants classified as Liability </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><i>Private Placement Warrants</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">There were <span id="xdx_904_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_pid_c20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--PrivatePlacementWarrantsMember_zGXKsS4q4Y6i" title="Warrants outstanding"><span id="xdx_908_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_pid_c20241231__us-gaap--ClassOfWarrantOrRightAxis__custom--PrivatePlacementWarrantsMember_zSBOYPafgcz" title="Warrants outstanding">166,821</span></span> private warrants outstanding as of March 31, 2025 and December 31, 2024, respectively. The Company accounts for the Private Placement Warrants (the “Private Placement Warrants”) issued in connection with the Initial Public Offering (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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp. </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 9 - Warrants (Continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><b>Common Stock Warrants classified as Liability (Continued)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><i>Private Placement Warrants (Continued)</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">The Private Placement Warrants are classified as Level 2 within the fair value hierarchy. Although these instruments are not actively traded, they are valued based on observable inputs, including the market price of the Company’s publicly traded warrants. The Company used a Black-Scholes model to estimate the fair value of the Private Placement Warrants, applying a discount to the value of the Public Warrants to account for the difference in remaining life. Because the valuation primarily relies on observable market data with limited adjustments, the Company determined that classification within Level 2 is appropriate.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><i>Term Loan Warrants (the “Original Penny Warrants”)</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">On May 13, 2024, the Company received a waiver, or the May 2024 Waiver, in regards to its compliance with the fixed charge coverage ratio and maximum senior leverage ratio with respect to the minimum cash requirements (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 <span id="xdx_905_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pid_c20240513__us-gaap--ClassOfWarrantOrRightAxis__custom--MayTwoThousandTwentyFourPennyWarrantsMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zIzVucDeoYT5" title="Warrans purchase">283,334</span> shares of the Company’s common stock, at an exercise price of $<span id="xdx_90F_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20240513__us-gaap--ClassOfWarrantOrRightAxis__custom--MayTwoThousandTwentyFourPennyWarrantsMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zhzXNj9Ms6Oc" title="Exercise price">0.09</span> 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<span id="xdx_90C_eus-gaap--WarrantsAndRightsOutstandingTerm_iI_dtY_c20240513__us-gaap--ClassOfWarrantOrRightAxis__custom--MayTwoThousandTwentyFourPennyWarrantsMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_znC7DtxS6vbk" style="display: none" title="Warrants exercisable Term">10</span> years from the date of issuance.</p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0pt 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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 <span id="xdx_90B_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pid_c20240628__us-gaap--ClassOfWarrantOrRightAxis__custom--JuneTwoThousandTwentyFourPennyWarrantsMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zdUzYh3TkwVj" title="Warrans purchase">233,334</span> shares of the Company’s common stock, at an exercise price of $<span id="xdx_90C_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20240628__us-gaap--ClassOfWarrantOrRightAxis__custom--JuneTwoThousandTwentyFourPennyWarrantsMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zYHTXQwJC4wf" title="Exercise price">0.09</span> 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<span id="xdx_90B_eus-gaap--WarrantsAndRightsOutstandingTerm_iI_dtY_c20240628__us-gaap--ClassOfWarrantOrRightAxis__custom--JuneTwoThousandTwentyFourPennyWarrantsMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zSMWg6sKzKpi" style="display: none" title="Warrants exercisable Term">10</span> years from the date of issuance.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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 <span id="xdx_90F_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pid_c20240930__us-gaap--ClassOfWarrantOrRightAxis__custom--SeptemberTwoThousandTwentyFourPennyWarrantsMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_z36NUYbuJ9h6" title="Warrans purchase">333,334</span> shares of the Company’s common stock, at an exercise price of $<span id="xdx_90E_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20240930__us-gaap--ClassOfWarrantOrRightAxis__custom--SeptemberTwoThousandTwentyFourPennyWarrantsMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zisteJ8KR1zl" title="Exercise price">0.09</span> 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<span id="xdx_909_eus-gaap--WarrantsAndRightsOutstandingTerm_iI_dtY_c20240930__us-gaap--ClassOfWarrantOrRightAxis__custom--SeptemberTwoThousandTwentyFourPennyWarrantsMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zVzQK1Qtgsxk" style="display: none" title="Warrants exercisable Term">10</span> years from the date of issuance.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">On December 31, 2024, the Company entered into the Fourth Amendment to the Term Loan with the Term Loan Lenders in regards to its compliance with the Tests for the quarter ended December 31, 2024. The Fourth Amendment provided for a one-time issuance the December 2024 Penny Warrants to purchase up to <span id="xdx_901_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pid_c20241231__us-gaap--ClassOfWarrantOrRightAxis__custom--DecemberTwoThousandTwentyFourPennyWarrantsMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zmnT9douVNNe" title="Warrans purchase">350,000</span> shares of the Company’s common stock, at an exercise price of $<span id="xdx_901_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20241231__us-gaap--ClassOfWarrantOrRightAxis__custom--DecemberTwoThousandTwentyFourPennyWarrantsMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zN65gHkntpA" title="Exercise price">0.01</span> per share, in connection with the Term Loan Lenders agreement to waive the Tests under the Term Loan for the quarter ended December 31, 2024 and to amend the Term Loan. During the year ended December 31, 2024 the Company issued additional Original Penny Warrants to purchase <span id="xdx_902_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pid_c20241231__us-gaap--ClassOfWarrantOrRightAxis__custom--OriginalPennyWarrantsMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_z042uCpOTltc" title="Warrants purchase">2,754</span> 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. The December 2024 Penny Warrants are immediately exercisable upon issuance and will expire ten years from the date of issuance.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 9 - Warrants (continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><b>Common Stock Warrants classified as Liability (Continued)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">On February 26, 2025, the Company entered into the Fifth Amendment to the Term Loan with the Term Loan Lenders in connection with the February 2025 securities purchase agreement (see <b>Note 10</b>). The Fifth Amendment provided for a one-time issuance the February 2025 Penny Warrants to purchase up to <span id="xdx_904_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pid_c20250226__us-gaap--ClassOfWarrantOrRightAxis__custom--FebruaryTwoThousandTwentyFivePennyWarrantsMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zmojO9xTg9ok" title="Warrans purchase">330,000</span> shares of the Company’s common stock, at an exercise price of $<span id="xdx_90E_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20250226__us-gaap--ClassOfWarrantOrRightAxis__custom--FebruaryTwoThousandTwentyFivePennyWarrantsMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zO2lc5r0OC1g" title="Exercise price">0.01</span> per share. The February 2025 Penny Warrants are immediately exercisable upon issuance and will expire ten<span id="xdx_906_eus-gaap--WarrantsAndRightsOutstandingTerm_iI_dtY_c20250226__us-gaap--ClassOfWarrantOrRightAxis__custom--FebruaryTwoThousandTwentyFivePennyWarrantsMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zWvUNx8GbLvk" style="display: none" title="Warrants exercisable Term">10</span> years from the date of issuance.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><i> </i></p> <p id="xdx_897_ecustom--ScheduleOfShareBasedPaymentAwardWarrantsValuationAssumptionsPennyWarrantsTableTextBlock_ze0O1IEh4lKg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">The May 2024 Penny Warrants, the June 2024 Penny Warrants, the September 2024 Penny Warrants, the December 2024 Penny Warrants and the February 2025 Penny Warrants were valued utilizing a Black-Scholes model with the following assumptions:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span style="display: none"><span id="xdx_8B1_z9K1opi3Dhzh">SCHEDULE OF PENNY WARRANTS</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">May 2024 penny warrants</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">June 2024 penny warrants</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">September 2024 penny warrants</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">December 2024 penny warrants</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">February 2025 penny warrants</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 35%">Stock price</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--SharePrice_iI_pid_c20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--MayTwoThousandTwentyFourPennyWarrantsMember_zupxAbVtUzHb" style="width: 9%; text-align: right" title="Stock price">10.71</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--SharePrice_iI_pid_c20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--JuneTwoThousandTwentyFourPennyWarrantsMember_zEH1XxFsXuc5" style="width: 9%; text-align: right" title="Stock price">7.65</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--SharePrice_iI_pid_c20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--SeptemberTwoThousandTwentyFourPennyWarrantsMember_zoxHoK8sxHQ4" style="width: 9%; text-align: right" title="Stock price">4.77</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--SharePrice_iI_pid_c20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--DecemberTwoThousandTwentyFourPennyWarrantsMember_zJLZMbPkrNWd" style="width: 9%; text-align: right" title="Stock price">2.78</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--SharePrice_iI_pid_c20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--FebruaryTwoThousandTwentyFivePennyWarrantsMember_zofLztJRhu1e" style="width: 9%; text-align: right" title="Stock price">2.12</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Strike price</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_uUSDPShares_c20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--MayTwoThousandTwentyFourPennyWarrantsMember_zTq4b82MVaj6" style="text-align: right" title="Strike price">0.09</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_uUSDPShares_c20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--JuneTwoThousandTwentyFourPennyWarrantsMember_zZC8Es7f0YU2" style="text-align: right" title="Strike price">0.09</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_uUSDPShares_c20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--SeptemberTwoThousandTwentyFourPennyWarrantsMember_zSgyJOi8Qdge" style="text-align: right" title="Strike price">0.09</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_uUSDPShares_c20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--DecemberTwoThousandTwentyFourPennyWarrantsMember_zQkMuwhmoq25" style="text-align: right" title="Strike price">0.01</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_uUSDPShares_c20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--FebruaryTwoThousandTwentyFivePennyWarrantsMember_zFeV9xeCT3e8" style="text-align: right" title="Strike price">0.01</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Term</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-size: 10pt"><span id="xdx_90C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20250101__20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--MayTwoThousandTwentyFourPennyWarrantsMember_zX2aLQr2IyJh" title="Term">10</span> years</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-size: 10pt"><span id="xdx_904_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20250101__20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--JuneTwoThousandTwentyFourPennyWarrantsMember_zZ3XnPQ2jutj" title="Term">10</span> years</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-size: 10pt"><span id="xdx_905_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20250101__20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--SeptemberTwoThousandTwentyFourPennyWarrantsMember_zN8WAEVGBWj1" title="Term">10</span> years</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-size: 10pt"><span id="xdx_909_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20250101__20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--SeptemberTwoThousandTwentyFourPennyWarrantsMember_zuvKs8hWLjsl" title="Term">10</span> years</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-size: 10pt"><span id="xdx_90E_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20250101__20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--FebruaryTwoThousandTwentyFivePennyWarrantsMember_z5VQyJOi7Jfg" title="Term">10</span> years</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Volatility</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20250101__20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--MayTwoThousandTwentyFourPennyWarrantsMember_ziVKxknYVKBk" style="text-align: right" title="Volatility">88</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20250101__20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--JuneTwoThousandTwentyFourPennyWarrantsMember_zujxBiDo5xjk" style="text-align: right" title="Volatility">91</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20250101__20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--SeptemberTwoThousandTwentyFourPennyWarrantsMember_zlx3ZLdmRXtl" style="text-align: right" title="Volatility">90</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20250101__20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--DecemberTwoThousandTwentyFourPennyWarrantsMember_zqb2dqYo4ka7" style="text-align: right" title="Volatility">90</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20250101__20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--FebruaryTwoThousandTwentyFivePennyWarrantsMember_znTT48uegPwe" style="text-align: right" title="Volatility">90</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Risk-free rate</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20250101__20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--MayTwoThousandTwentyFourPennyWarrantsMember_z6RkQv8w0Acj" style="text-align: right" title="Risk-free rate">4.5</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20250101__20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--JuneTwoThousandTwentyFourPennyWarrantsMember_zPJHAHVyjo1e" style="text-align: right" title="Risk-free rate">4.4</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20250101__20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--SeptemberTwoThousandTwentyFourPennyWarrantsMember_z8B1NXuNcyei" style="text-align: right" title="Risk-free rate">3.8</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20250101__20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--DecemberTwoThousandTwentyFourPennyWarrantsMember_zPaM13oGrwKj" style="text-align: right" title="Risk-free rate">4.6</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20250101__20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--FebruaryTwoThousandTwentyFivePennyWarrantsMember_zIEtSs87Ug74" style="text-align: right" title="Risk-free rate">4.3</td><td style="text-align: left">%</td></tr> </table> <p id="xdx_8A9_zCjJsAgh4p3i" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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 Original Penny Warrants outstanding prior to the merger.</p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-variant: small-caps; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 9 - Warrants (continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><b>Common Stock Warrants classified as Liability (Continued)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><b> </b></p> <p id="xdx_89C_ecustom--ScheduleOfShareBasedPaymentAwardWarrantsValuationAssumptionsTableTextBlock_zbEBqyC2gFT2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">The following table provides the significant inputs to the Black-Scholes method for the fair value of the Penny Warrants:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="display: none"><span id="xdx_8B9_zzGrxOS6S3Gi">SCHEDULE FAIR VALUE WARRANTS</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="margin-top: 0; margin-bottom: 0">As of <br/>March 31, 2025</p></td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">As of <br/>December 31, 2024</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%">Common stock price</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--SharePrice_iI_pid_c20250331__us-gaap--StatementEquityComponentsAxis__custom--PennyWarrantsMember_zh9kPLUiPqj4" style="width: 18%; text-align: right" title="Common stock price">0.98</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--SharePrice_iI_pid_c20241231__us-gaap--StatementEquityComponentsAxis__custom--PennyWarrantsMember_z3myeXwllAY1" style="width: 18%; text-align: right" title="Common stock price">2.78</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercise price</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_uUSDPShares_c20250331__us-gaap--StatementEquityComponentsAxis__custom--PennyWarrantsMember_zhPhjJfmMgFe" style="text-align: right" title="Exercise price">0.09</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_uUSDPShares_c20241231__us-gaap--StatementEquityComponentsAxis__custom--PennyWarrantsMember_zplMEVMdikU" style="text-align: right" title="Exercise price">0.09</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Dividend yield</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_uPure_c20250101__20250331__us-gaap--StatementEquityComponentsAxis__custom--PennyWarrantsMember_zC68h6wFa5Z5" title="Dividend yield">0</span></td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_uPure_c20240101__20241231__us-gaap--StatementEquityComponentsAxis__custom--PennyWarrantsMember_z7OhwPUWCoQf" title="Dividend yield">0</span></td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Term</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_906_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20250101__20250331__us-gaap--StatementEquityComponentsAxis__custom--PennyWarrantsMember_zOe5lUZgSq9g" title="Term">7.52</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20240101__20241231__us-gaap--StatementEquityComponentsAxis__custom--PennyWarrantsMember_z2T0BoiwtMO1" title="Term">7.77</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Volatility</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20250101__20250331__us-gaap--StatementEquityComponentsAxis__custom--PennyWarrantsMember_zBIrCCSZxQK7" style="text-align: right" title="Volatility">102.0</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20240101__20241231__us-gaap--StatementEquityComponentsAxis__custom--PennyWarrantsMember_zxEyWmZ8s7ga" style="text-align: right" title="Volatility">94.00</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Risk-free rate</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20250101__20250331__us-gaap--StatementEquityComponentsAxis__custom--PennyWarrantsMember_zmWwfJJBUeGj" style="text-align: right" title="Risk-free rate">4.1</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20240101__20241231__us-gaap--StatementEquityComponentsAxis__custom--PennyWarrantsMember_zANc1iUItKK6" style="text-align: right" title="Risk-free rate">4.5</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Fair value</td><td> </td> <td style="text-align: left">$</td><td id="xdx_989_ecustom--FairValueOfWarrant_iI_pid_c20250331__us-gaap--StatementEquityComponentsAxis__custom--PennyWarrantsMember_zkfPiUUtqdV7" style="text-align: right" title="Fair value">0.95</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98A_ecustom--FairValueOfWarrant_iI_pid_c20241231__us-gaap--StatementEquityComponentsAxis__custom--PennyWarrantsMember_z7K3zdiX89Z1" style="text-align: right" title="Fair value">2.74</td><td style="text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">The following table provides the significant inputs to the Black-Scholes method for the fair value of the Investor Warrants issued in the June 2023 Offering:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="margin-top: 0; margin-bottom: 0">As of <br/>March 31, 2025</p></td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">As of <br/>December 31, 2024</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%">Common stock price</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--SharePrice_iI_pid_c20250331__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember_zH7WQJHv0NB4" style="width: 18%; text-align: right" title="Common stock price">0.98</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--SharePrice_iI_pid_c20241231__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember_zmLKTC9DP5T3" style="width: 18%; text-align: right" title="Common stock price">2.78</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercise price</td><td> </td> <td style="text-align: left">$</td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_uUSDPShares_c20250331__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember_zbbmPTqN2kA2" style="text-align: right" title="Exercise price">18.00</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_uUSDPShares_c20241231__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember_zsMWylOsKa52" style="text-align: right" title="Exercise price">18.00</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Dividend yield</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20250101__20250331__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember_zKbypb9HurCc" title="Dividend yield">0</span></td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20240101__20241231__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember_z6LKzTXLv4a8" title="Dividend yield">0</span></td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Term</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_906_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20250101__20250331__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember_zbHpUuk9OGCa" title="Term">3.23</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_902_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20240101__20241231__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember_zzQsueGSYEt3" title="Term">3.47</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Volatility</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20250101__20250331__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember_zYszqVXA2t92" style="text-align: right" title="Volatility">121</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20240101__20241231__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember_zf0fHeWPXtG5" style="text-align: right" title="Volatility">105</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Risk-free rate</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20250101__20250331__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember_ztLc5HWsSm56" style="text-align: right" title="Risk-free rate">3.9</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20240101__20241231__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember_zylOK72Pia86" style="text-align: right" title="Risk-free rate">4.3</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Fair value</td><td> </td> <td style="text-align: left">$</td><td id="xdx_983_ecustom--FairValueOfWarrant_iI_pid_c20250331__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember_zxfzyQllnTE8" style="text-align: right" title="Fair value">0.27</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_982_ecustom--FairValueOfWarrant_iI_pid_c20241231__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember_zayxV5nlgmG4" style="text-align: right" title="Fair value">1.01</td><td style="text-align: left"> </td></tr> </table> <p id="xdx_8AB_zLMG3PGaJN8c" style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 9 - Warrants (continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Common Stock Warrants classified as Liability (Continued)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_89E_eus-gaap--ScheduleOfShareBasedCompensationActivityTableTextBlock_zNNJ7N6Hxgv" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table presents a roll-forward of the Company’s warrants from January 1, 2025 to March 31, 2025 and January 1, 2024 to March 31, 2024:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="display: none"><span id="xdx_8B1_zIyIJvkxqL6i">SCHEDULE OF ROLL FORWARD IN WARRANTS</span></span> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 96%; margin-left: 0.25in"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_4B0_us-gaap--StatementEquityComponentsAxis_custom--PrivateWarrantsMember_zQ4eQ2hH3DPk" style="border-bottom: Black 1pt solid; text-align: center">Private  Warrants</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_4B9_us-gaap--StatementEquityComponentsAxis_custom--PublicWarrantsMember_zCdeMoLaPugd" style="border-bottom: Black 1pt solid; text-align: center">Public <br/>Warrants</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_4B3_us-gaap--StatementEquityComponentsAxis_custom--TermLoanWarrantsMember_zqJFEnW50Go8" style="border-bottom: Black 1pt solid; text-align: center">Term Loan <br/>Warrants</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_4B7_us-gaap--StatementEquityComponentsAxis_custom--InvestorWarrantsMember_zlN0PgRwDsNg" style="border-bottom: Black 1pt solid; text-align: center">Investor <br/>Warrants</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_43D_c20250101__20250331_eus-gaap--ClassOfWarrantOrRightOutstanding_iS_pid_zMSMpVDSQL55" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 44%">Warrants Outstanding, January 1, 2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right">166,821</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right">1,046,948</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right">1,412,147</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right">1,236,878</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_pid_di_z3SC7BW6YVIg" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Exercise of warrants</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1277">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1278">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1279">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1280">-</span></td><td style="text-align: left"> </td></tr> <tr id="xdx_407_ecustom--ClassOfWarrantOrRightIssued_iN_pid_di_zDFb0VsZXqu1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1pt">Warrants issued</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1282">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1283">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">330,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1285">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_438_c20250101__20250331_eus-gaap--ClassOfWarrantOrRightOutstanding_iE_pid_zVhOsHzeZO4d" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Warrants Outstanding, March 31, 2025</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">166,821</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1,046,948</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1,742,147</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1,236,878</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_436_c20240101__20240331_eus-gaap--ClassOfWarrantOrRightOutstanding_iS_pid_zcGqXInL8uo2" style="vertical-align: bottom; background-color: White"> <td>Warrants Outstanding, January 1, 2024</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">166,821</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,046,948</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">209,391</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,236,878</td><td style="text-align: left"> </td></tr> <tr id="xdx_430_c20240101__20240331_eus-gaap--ClassOfWarrantOrRightOutstanding_iS_pid_zGshJNwNGph9" style="display: none; vertical-align: bottom; background-color: White"> <td>Warrants Outstanding, Beginning</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">166,821</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,046,948</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">209,391</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,236,878</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_pid_di_zGRzuMdQD0M8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Exercise of warrants</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1302">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1303">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1304">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1305">-</span></td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_ecustom--ClassOfWarrantOrRightIssued_iN_pid_di_zYG60Mkgisjf" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt">Warrants issued</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1307">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1308">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1309">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1310">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_43C_c20240101__20240331_eus-gaap--ClassOfWarrantOrRightOutstanding_iE_pid_zMyGZlxX0sb1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Warrants Outstanding, March 31, 2024</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">166,821</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1,046,948</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">209,391</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1,236,878</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr id="xdx_43D_c20240101__20240331_eus-gaap--ClassOfWarrantOrRightOutstanding_iE_pid_zq9elpvjxc2j" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Warrants Outstanding, Ending</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">166,821</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1,046,948</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">209,391</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1,236,878</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8AA_zayOBs1Pfe9c" style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">  </p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-variant: small-caps; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 9 - Warrants (continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Private Placement Convertible Preferred Warrants classified as Liability</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In February 2025, the Company issued <span id="xdx_901_eus-gaap--SharesIssued_iI_c20250228__us-gaap--ClassOfWarrantOrRightAxis__custom--PrivatePlacementConvertiblePreferredWarrantsMember_zhLWOLzHjb99" title="Shares issued">20</span> Private Placement Convertible Preferred Warrants (as defined below) as part of its initial closing of the Private Placement (see Note 10). Each warrant entitles the holder to purchase up to <span id="xdx_902_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20250228__us-gaap--ClassOfWarrantOrRightAxis__custom--PrivatePlacementConvertiblePreferredWarrantsMember_zuFfjCWPkDs1" title="Warrants to purchase up">200</span> shares of Series A Preferred Stock at an exercise price of $<span id="xdx_908_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20250228__us-gaap--ClassOfWarrantOrRightAxis__custom--PrivatePlacementConvertiblePreferredWarrantsMember_zpOCWZzcfPQc" title="Warrants exercise price">10,000</span> per share. The warrants are exercisable immediately and expire upon the earliest of: (i) 33 months after the shares of common stock issuable upon conversion of Series A Preferred Stock are registered for resale under the Securities Act, (ii) the occurrence of a Change of Control (as defined in the Certificate of Designation), or (iii) the full redemption of Series A Preferred Stock. The number of underlying shares and the exercise price are subject to adjustment in the event of stock splits, combinations, dividends, reclassifications, or other similar events. Upon exercise of the warrants, the Series A Preferred Stock is convertible into common stock at a conversion price that is subject to a floor of $<span id="xdx_90A_ecustom--ClassOfWarrantOrRightFloorPrice_iI_pid_c20250228__us-gaap--ClassOfWarrantOrRightAxis__custom--PrivatePlacementConvertiblePreferredWarrantsMember_zuZIxzgjDzme" title="Floor price">0.424</span> per share, pursuant to the terms set forth in the Certificate of Designation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company accounts for the Private Placement Convertible Preferred Warrants issued in connection with the initial offering in accordance with the guidance contained in ASC 815-40. Such guidance provides that because the Private Placement Convertible Preferred Warrants do not meet the criteria for equity treatment thereunder, each Private Placement Convertible Preferred Warrant must be recorded as a derivative liability with the initial fair value of approximately $<span id="xdx_90E_eus-gaap--DerivativeLiabilities_iI_pn3n3_c20250228__us-gaap--ClassOfWarrantOrRightAxis__custom--PrivatePlacementConvertiblePreferredWarrantsMember_zZ8QXlHHlFu1" title="Fair value of derivative liability">120</span>. This liability is subject to re-measurement at each balance sheet date, with changes recorded in the consolidated statement of operations and comprehensive loss. However, the Company has deemed the fair value at inception as immaterial for initial recognition of the liability and will continue to monitor the change in fair value for subsequent periods. Please see <b>Note 10</b> for more information as related to the aforementioned initial closing of the Private Placement.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_89F_ecustom--ScheduleOfPrivatePlacementConvertiblePreferredWarrantsTableTextBlock_zkcW6wXCt7Y9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table presents a roll-forward of the Company’s Private Placement Convertible Preferred Warrants from January 1, 2025 to March 31, 2025:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="display: none"><span><span id="xdx_8B9_zZHKcGJJKhK4">SCHEDULE OF ROLL FORWARD IN CONVERTIBLE PREFERRED WARRANTS</span></span></span> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 85%; margin-left: 0.25in"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_4B2_us-gaap--ClassOfWarrantOrRightAxis_custom--NumberOfWarrantsMember_zu054EBAQM3k" style="border-bottom: Black 1pt solid; text-align: center">Number of Warrants</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_4B5_us-gaap--ClassOfWarrantOrRightAxis_custom--PreferredSharesUnderlyingWarrantsMember_zoPc3bVYSUO1" style="border-bottom: Black 1pt solid; text-align: center">Preferred Shares Underlying Warrants</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_4B8_us-gaap--ClassOfWarrantOrRightAxis_custom--CommonSharesUnderlyingWarrantsMember_zxUFWG6vsnae" style="border-bottom: Black 1pt solid; text-align: center">Common Shares Underlying (at $1.00 floor)</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_431_c20250101__20250331_eus-gaap--ClassOfWarrantOrRightOutstanding_iS_zm7Hvx1pgFh8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Warrants Outstanding, January 1, 2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1334">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1335">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1336">-</span></td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_di_zWy53e2SB5qc" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Exercise of warrants</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1338">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1339">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1340">-</span></td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_ecustom--ClassOfWarrantOrRightIssued_iN_di_zDPZUhxK8O91" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: justify; padding-bottom: 1pt">Warrants issued</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1pt solid; width: 12%; text-align: right">20</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1pt solid; width: 12%; text-align: right">4,000</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1pt solid; width: 12%; text-align: right">48,000,000</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_439_c20250101__20250331_eus-gaap--ClassOfWarrantOrRightOutstanding_iE_zzDvsObrSYY" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Warrants Outstanding, March 31, 2025</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">20</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">4,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">48,000,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A1_z6c5Li1xvtk1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b><span style="font-variant: small-caps; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp.</b></span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> 1046948 1046948 1046948 1046948 63362 2028-06-20 22.50 1.25 1111111 18.00 166667 166667 156112 156112 <p id="xdx_894_ecustom--ScheduleofUnderwriterWarrantTableTextBlock_zCNQ9Eb0MIkk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">Underwriters’ Warrants:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span style="display: none"><span id="xdx_8B4_zlLvM0OcOHg">SCHEDULE OF UNDERWRITER WARRANTS</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_4BA_us-gaap--StatementClassOfStockAxis_custom--UnderwritersWarrantsMember_zRRSCfSAnYKa" style="border-bottom: Black 1pt solid; text-align: center">Common Stock Warrants</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_436_c20250101__20250331_eus-gaap--ClassOfWarrantOrRightOutstanding_iS_zt6oCJIPSBT" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%">Underwriters’ Warrants Outstanding, January 1, 2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">63,362</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_43E_c20250101__20250331_eus-gaap--ClassOfWarrantOrRightOutstanding_iS_zcR6ydcFxUI7" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Underwriters’ Warrants Outstanding, Beginning</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">63,362</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_ecustom--ClassOfWarrantOrRightIssued_zW9i341ANA6c" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt">Underwriters’ Warrants issued</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1120">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_43C_c20250101__20250331_eus-gaap--ClassOfWarrantOrRightOutstanding_iE_zHJ75jPDMlKd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Underwriters’ Warrants Outstanding, March 31, 2025</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">63,362</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr id="xdx_438_c20250101__20250331_eus-gaap--ClassOfWarrantOrRightOutstanding_iE_zssShB5a7NLk" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Underwriters’ Warrants Outstanding, Ending</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">63,362</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 63362000 63362000 63362000 63362000 166821 166821 283334 0.09 P10Y 233334 0.09 P10Y 333334 0.09 P10Y 350000 0.01 2754 330000 0.01 P10Y <p id="xdx_897_ecustom--ScheduleOfShareBasedPaymentAwardWarrantsValuationAssumptionsPennyWarrantsTableTextBlock_ze0O1IEh4lKg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">The May 2024 Penny Warrants, the June 2024 Penny Warrants, the September 2024 Penny Warrants, the December 2024 Penny Warrants and the February 2025 Penny Warrants were valued utilizing a Black-Scholes model with the following assumptions:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span style="display: none"><span id="xdx_8B1_z9K1opi3Dhzh">SCHEDULE OF PENNY WARRANTS</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">May 2024 penny warrants</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">June 2024 penny warrants</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">September 2024 penny warrants</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">December 2024 penny warrants</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">February 2025 penny warrants</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 35%">Stock price</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--SharePrice_iI_pid_c20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--MayTwoThousandTwentyFourPennyWarrantsMember_zupxAbVtUzHb" style="width: 9%; text-align: right" title="Stock price">10.71</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--SharePrice_iI_pid_c20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--JuneTwoThousandTwentyFourPennyWarrantsMember_zEH1XxFsXuc5" style="width: 9%; text-align: right" title="Stock price">7.65</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--SharePrice_iI_pid_c20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--SeptemberTwoThousandTwentyFourPennyWarrantsMember_zoxHoK8sxHQ4" style="width: 9%; text-align: right" title="Stock price">4.77</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--SharePrice_iI_pid_c20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--DecemberTwoThousandTwentyFourPennyWarrantsMember_zJLZMbPkrNWd" style="width: 9%; text-align: right" title="Stock price">2.78</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--SharePrice_iI_pid_c20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--FebruaryTwoThousandTwentyFivePennyWarrantsMember_zofLztJRhu1e" style="width: 9%; text-align: right" title="Stock price">2.12</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Strike price</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_uUSDPShares_c20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--MayTwoThousandTwentyFourPennyWarrantsMember_zTq4b82MVaj6" style="text-align: right" title="Strike price">0.09</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_uUSDPShares_c20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--JuneTwoThousandTwentyFourPennyWarrantsMember_zZC8Es7f0YU2" style="text-align: right" title="Strike price">0.09</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_uUSDPShares_c20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--SeptemberTwoThousandTwentyFourPennyWarrantsMember_zSgyJOi8Qdge" style="text-align: right" title="Strike price">0.09</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_uUSDPShares_c20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--DecemberTwoThousandTwentyFourPennyWarrantsMember_zQkMuwhmoq25" style="text-align: right" title="Strike price">0.01</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_uUSDPShares_c20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--FebruaryTwoThousandTwentyFivePennyWarrantsMember_zFeV9xeCT3e8" style="text-align: right" title="Strike price">0.01</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Term</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-size: 10pt"><span id="xdx_90C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20250101__20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--MayTwoThousandTwentyFourPennyWarrantsMember_zX2aLQr2IyJh" title="Term">10</span> years</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-size: 10pt"><span id="xdx_904_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20250101__20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--JuneTwoThousandTwentyFourPennyWarrantsMember_zZ3XnPQ2jutj" title="Term">10</span> years</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-size: 10pt"><span id="xdx_905_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20250101__20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--SeptemberTwoThousandTwentyFourPennyWarrantsMember_zN8WAEVGBWj1" title="Term">10</span> years</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-size: 10pt"><span id="xdx_909_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20250101__20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--SeptemberTwoThousandTwentyFourPennyWarrantsMember_zuvKs8hWLjsl" title="Term">10</span> years</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-size: 10pt"><span id="xdx_90E_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20250101__20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--FebruaryTwoThousandTwentyFivePennyWarrantsMember_z5VQyJOi7Jfg" title="Term">10</span> years</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Volatility</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20250101__20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--MayTwoThousandTwentyFourPennyWarrantsMember_ziVKxknYVKBk" style="text-align: right" title="Volatility">88</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20250101__20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--JuneTwoThousandTwentyFourPennyWarrantsMember_zujxBiDo5xjk" style="text-align: right" title="Volatility">91</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20250101__20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--SeptemberTwoThousandTwentyFourPennyWarrantsMember_zlx3ZLdmRXtl" style="text-align: right" title="Volatility">90</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20250101__20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--DecemberTwoThousandTwentyFourPennyWarrantsMember_zqb2dqYo4ka7" style="text-align: right" title="Volatility">90</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20250101__20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--FebruaryTwoThousandTwentyFivePennyWarrantsMember_znTT48uegPwe" style="text-align: right" title="Volatility">90</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Risk-free rate</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20250101__20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--MayTwoThousandTwentyFourPennyWarrantsMember_z6RkQv8w0Acj" style="text-align: right" title="Risk-free rate">4.5</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20250101__20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--JuneTwoThousandTwentyFourPennyWarrantsMember_zPJHAHVyjo1e" style="text-align: right" title="Risk-free rate">4.4</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20250101__20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--SeptemberTwoThousandTwentyFourPennyWarrantsMember_z8B1NXuNcyei" style="text-align: right" title="Risk-free rate">3.8</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20250101__20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--DecemberTwoThousandTwentyFourPennyWarrantsMember_zPaM13oGrwKj" style="text-align: right" title="Risk-free rate">4.6</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20250101__20250331__us-gaap--ClassOfWarrantOrRightAxis__custom--FebruaryTwoThousandTwentyFivePennyWarrantsMember_zIEtSs87Ug74" style="text-align: right" title="Risk-free rate">4.3</td><td style="text-align: left">%</td></tr> </table> 10.71 7.65 4.77 2.78 2.12 0.09 0.09 0.09 0.01 0.01 P10Y P10Y P10Y P10Y P10Y 0.88 0.91 0.90 0.90 0.90 0.045 0.044 0.038 0.046 0.043 <p id="xdx_89C_ecustom--ScheduleOfShareBasedPaymentAwardWarrantsValuationAssumptionsTableTextBlock_zbEBqyC2gFT2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">The following table provides the significant inputs to the Black-Scholes method for the fair value of the Penny Warrants:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="display: none"><span id="xdx_8B9_zzGrxOS6S3Gi">SCHEDULE FAIR VALUE WARRANTS</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="margin-top: 0; margin-bottom: 0">As of <br/>March 31, 2025</p></td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">As of <br/>December 31, 2024</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%">Common stock price</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--SharePrice_iI_pid_c20250331__us-gaap--StatementEquityComponentsAxis__custom--PennyWarrantsMember_zh9kPLUiPqj4" style="width: 18%; text-align: right" title="Common stock price">0.98</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--SharePrice_iI_pid_c20241231__us-gaap--StatementEquityComponentsAxis__custom--PennyWarrantsMember_z3myeXwllAY1" style="width: 18%; text-align: right" title="Common stock price">2.78</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercise price</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_uUSDPShares_c20250331__us-gaap--StatementEquityComponentsAxis__custom--PennyWarrantsMember_zhPhjJfmMgFe" style="text-align: right" title="Exercise price">0.09</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_uUSDPShares_c20241231__us-gaap--StatementEquityComponentsAxis__custom--PennyWarrantsMember_zplMEVMdikU" style="text-align: right" title="Exercise price">0.09</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Dividend yield</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_uPure_c20250101__20250331__us-gaap--StatementEquityComponentsAxis__custom--PennyWarrantsMember_zC68h6wFa5Z5" title="Dividend yield">0</span></td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_uPure_c20240101__20241231__us-gaap--StatementEquityComponentsAxis__custom--PennyWarrantsMember_z7OhwPUWCoQf" title="Dividend yield">0</span></td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Term</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_906_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20250101__20250331__us-gaap--StatementEquityComponentsAxis__custom--PennyWarrantsMember_zOe5lUZgSq9g" title="Term">7.52</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20240101__20241231__us-gaap--StatementEquityComponentsAxis__custom--PennyWarrantsMember_z2T0BoiwtMO1" title="Term">7.77</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Volatility</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20250101__20250331__us-gaap--StatementEquityComponentsAxis__custom--PennyWarrantsMember_zBIrCCSZxQK7" style="text-align: right" title="Volatility">102.0</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20240101__20241231__us-gaap--StatementEquityComponentsAxis__custom--PennyWarrantsMember_zxEyWmZ8s7ga" style="text-align: right" title="Volatility">94.00</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Risk-free rate</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20250101__20250331__us-gaap--StatementEquityComponentsAxis__custom--PennyWarrantsMember_zmWwfJJBUeGj" style="text-align: right" title="Risk-free rate">4.1</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20240101__20241231__us-gaap--StatementEquityComponentsAxis__custom--PennyWarrantsMember_zANc1iUItKK6" style="text-align: right" title="Risk-free rate">4.5</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Fair value</td><td> </td> <td style="text-align: left">$</td><td id="xdx_989_ecustom--FairValueOfWarrant_iI_pid_c20250331__us-gaap--StatementEquityComponentsAxis__custom--PennyWarrantsMember_zkfPiUUtqdV7" style="text-align: right" title="Fair value">0.95</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98A_ecustom--FairValueOfWarrant_iI_pid_c20241231__us-gaap--StatementEquityComponentsAxis__custom--PennyWarrantsMember_z7K3zdiX89Z1" style="text-align: right" title="Fair value">2.74</td><td style="text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">The following table provides the significant inputs to the Black-Scholes method for the fair value of the Investor Warrants issued in the June 2023 Offering:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="margin-top: 0; margin-bottom: 0">As of <br/>March 31, 2025</p></td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">As of <br/>December 31, 2024</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%">Common stock price</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--SharePrice_iI_pid_c20250331__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember_zH7WQJHv0NB4" style="width: 18%; text-align: right" title="Common stock price">0.98</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--SharePrice_iI_pid_c20241231__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember_zmLKTC9DP5T3" style="width: 18%; text-align: right" title="Common stock price">2.78</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercise price</td><td> </td> <td style="text-align: left">$</td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_uUSDPShares_c20250331__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember_zbbmPTqN2kA2" style="text-align: right" title="Exercise price">18.00</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_uUSDPShares_c20241231__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember_zsMWylOsKa52" style="text-align: right" title="Exercise price">18.00</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Dividend yield</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20250101__20250331__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember_zKbypb9HurCc" title="Dividend yield">0</span></td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20240101__20241231__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember_z6LKzTXLv4a8" title="Dividend yield">0</span></td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Term</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_906_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20250101__20250331__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember_zbHpUuk9OGCa" title="Term">3.23</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_902_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20240101__20241231__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember_zzQsueGSYEt3" title="Term">3.47</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Volatility</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20250101__20250331__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember_zYszqVXA2t92" style="text-align: right" title="Volatility">121</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20240101__20241231__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember_zf0fHeWPXtG5" style="text-align: right" title="Volatility">105</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Risk-free rate</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20250101__20250331__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember_ztLc5HWsSm56" style="text-align: right" title="Risk-free rate">3.9</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20240101__20241231__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember_zylOK72Pia86" style="text-align: right" title="Risk-free rate">4.3</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Fair value</td><td> </td> <td style="text-align: left">$</td><td id="xdx_983_ecustom--FairValueOfWarrant_iI_pid_c20250331__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember_zxfzyQllnTE8" style="text-align: right" title="Fair value">0.27</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_982_ecustom--FairValueOfWarrant_iI_pid_c20241231__us-gaap--StatementEquityComponentsAxis__custom--InvestorWarrantsMember_zayxV5nlgmG4" style="text-align: right" title="Fair value">1.01</td><td style="text-align: left"> </td></tr> </table> 0.98 2.78 0.09 0.09 0 0 P7Y6M7D P7Y9M7D 1.020 0.9400 0.041 0.045 0.95 2.74 0.98 2.78 18.00 18.00 0 0 P3Y2M23D P3Y5M19D 1.21 1.05 0.039 0.043 0.27 1.01 <p id="xdx_89E_eus-gaap--ScheduleOfShareBasedCompensationActivityTableTextBlock_zNNJ7N6Hxgv" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table presents a roll-forward of the Company’s warrants from January 1, 2025 to March 31, 2025 and January 1, 2024 to March 31, 2024:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="display: none"><span id="xdx_8B1_zIyIJvkxqL6i">SCHEDULE OF ROLL FORWARD IN WARRANTS</span></span> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 96%; margin-left: 0.25in"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_4B0_us-gaap--StatementEquityComponentsAxis_custom--PrivateWarrantsMember_zQ4eQ2hH3DPk" style="border-bottom: Black 1pt solid; text-align: center">Private  Warrants</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_4B9_us-gaap--StatementEquityComponentsAxis_custom--PublicWarrantsMember_zCdeMoLaPugd" style="border-bottom: Black 1pt solid; text-align: center">Public <br/>Warrants</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_4B3_us-gaap--StatementEquityComponentsAxis_custom--TermLoanWarrantsMember_zqJFEnW50Go8" style="border-bottom: Black 1pt solid; text-align: center">Term Loan <br/>Warrants</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_4B7_us-gaap--StatementEquityComponentsAxis_custom--InvestorWarrantsMember_zlN0PgRwDsNg" style="border-bottom: Black 1pt solid; text-align: center">Investor <br/>Warrants</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_43D_c20250101__20250331_eus-gaap--ClassOfWarrantOrRightOutstanding_iS_pid_zMSMpVDSQL55" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 44%">Warrants Outstanding, January 1, 2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right">166,821</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right">1,046,948</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right">1,412,147</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right">1,236,878</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_pid_di_z3SC7BW6YVIg" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Exercise of warrants</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1277">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1278">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1279">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1280">-</span></td><td style="text-align: left"> </td></tr> <tr id="xdx_407_ecustom--ClassOfWarrantOrRightIssued_iN_pid_di_zDFb0VsZXqu1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1pt">Warrants issued</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1282">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1283">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">330,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1285">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_438_c20250101__20250331_eus-gaap--ClassOfWarrantOrRightOutstanding_iE_pid_zVhOsHzeZO4d" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Warrants Outstanding, March 31, 2025</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">166,821</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1,046,948</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1,742,147</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1,236,878</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_436_c20240101__20240331_eus-gaap--ClassOfWarrantOrRightOutstanding_iS_pid_zcGqXInL8uo2" style="vertical-align: bottom; background-color: White"> <td>Warrants Outstanding, January 1, 2024</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">166,821</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,046,948</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">209,391</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,236,878</td><td style="text-align: left"> </td></tr> <tr id="xdx_430_c20240101__20240331_eus-gaap--ClassOfWarrantOrRightOutstanding_iS_pid_zGshJNwNGph9" style="display: none; vertical-align: bottom; background-color: White"> <td>Warrants Outstanding, Beginning</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">166,821</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,046,948</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">209,391</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,236,878</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_pid_di_zGRzuMdQD0M8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Exercise of warrants</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1302">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1303">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1304">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1305">-</span></td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_ecustom--ClassOfWarrantOrRightIssued_iN_pid_di_zYG60Mkgisjf" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt">Warrants issued</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1307">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1308">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1309">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1310">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_43C_c20240101__20240331_eus-gaap--ClassOfWarrantOrRightOutstanding_iE_pid_zMyGZlxX0sb1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Warrants Outstanding, March 31, 2024</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">166,821</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1,046,948</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">209,391</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1,236,878</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr id="xdx_43D_c20240101__20240331_eus-gaap--ClassOfWarrantOrRightOutstanding_iE_pid_zq9elpvjxc2j" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Warrants Outstanding, Ending</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">166,821</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1,046,948</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">209,391</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1,236,878</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 166821 1046948 1412147 1236878 -330000 166821 1046948 1742147 1236878 166821 1046948 209391 1236878 166821 1046948 209391 1236878 166821 1046948 209391 1236878 166821 1046948 209391 1236878 20 200 10000 0.424 120000 <p id="xdx_89F_ecustom--ScheduleOfPrivatePlacementConvertiblePreferredWarrantsTableTextBlock_zkcW6wXCt7Y9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table presents a roll-forward of the Company’s Private Placement Convertible Preferred Warrants from January 1, 2025 to March 31, 2025:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="display: none"><span><span id="xdx_8B9_zZHKcGJJKhK4">SCHEDULE OF ROLL FORWARD IN CONVERTIBLE PREFERRED WARRANTS</span></span></span> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 85%; margin-left: 0.25in"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_4B2_us-gaap--ClassOfWarrantOrRightAxis_custom--NumberOfWarrantsMember_zu054EBAQM3k" style="border-bottom: Black 1pt solid; text-align: center">Number of Warrants</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_4B5_us-gaap--ClassOfWarrantOrRightAxis_custom--PreferredSharesUnderlyingWarrantsMember_zoPc3bVYSUO1" style="border-bottom: Black 1pt solid; text-align: center">Preferred Shares Underlying Warrants</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_4B8_us-gaap--ClassOfWarrantOrRightAxis_custom--CommonSharesUnderlyingWarrantsMember_zxUFWG6vsnae" style="border-bottom: Black 1pt solid; text-align: center">Common Shares Underlying (at $1.00 floor)</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_431_c20250101__20250331_eus-gaap--ClassOfWarrantOrRightOutstanding_iS_zm7Hvx1pgFh8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Warrants Outstanding, January 1, 2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1334">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1335">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1336">-</span></td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_di_zWy53e2SB5qc" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Exercise of warrants</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1338">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1339">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1340">-</span></td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_ecustom--ClassOfWarrantOrRightIssued_iN_di_zDPZUhxK8O91" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: justify; padding-bottom: 1pt">Warrants issued</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1pt solid; width: 12%; text-align: right">20</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1pt solid; width: 12%; text-align: right">4,000</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1pt solid; width: 12%; text-align: right">48,000,000</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_439_c20250101__20250331_eus-gaap--ClassOfWarrantOrRightOutstanding_iE_zzDvsObrSYY" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Warrants Outstanding, March 31, 2025</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">20</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">4,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">48,000,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> -20000 -4000000 -48000000000 20000 4000000 48000000000 <p id="xdx_805_eus-gaap--PreferredStockTextBlock_zmiv2tbvaMYh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTE 10 – <span><span id="xdx_829_ziB8TjtGKfIb">SERIES A PREFERRED STOCK</span></span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In February 2025, the Company entered into the Purchase Agreement with an institutional investor. Pursuant to the Purchase Agreement, the investor agreed to purchase in a registered direct offering (the “Registered Direct Offering”) from the Company <span id="xdx_90E_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20250201__20250228__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--InvestorMember__us-gaap--StatementClassOfStockAxis__custom--SeriesAConvertiblePreferredStockMember_z7AME14v3Q12" title="Number of shares issued">180</span> shares of Series A Convertible Preferred Stock, par value $<span id="xdx_90C_eus-gaap--PreferredStockParOrStatedValuePerShare_iI_pid_c20250228__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--InvestorMember__us-gaap--StatementClassOfStockAxis__custom--SeriesAConvertiblePreferredStockMember_zBM2ttZvkJNi" title="Preferred stock par value">0.0001</span> per share (the “Series A Preferred Stock”), at a price of $<span id="xdx_90B_eus-gaap--SharePrice_iI_pid_c20250228__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--InvestorMember__us-gaap--StatementClassOfStockAxis__custom--SeriesAConvertiblePreferredStockMember_zrFTmerXV2Ud" title="Share price">10,000</span> per share, initially convertible into shares of common stock, par value $<span id="xdx_90C_eus-gaap--CommonStockParOrStatedValuePerShare_iI_pid_c20250228__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--InvestorMember__us-gaap--StatementClassOfStockAxis__custom--SeriesAConvertiblePreferredStockMember_z79NmiEIBkad" title="Common stock par value">0.0001</span> per share of the Company, at a conversion price of $<span id="xdx_903_eus-gaap--PreferredStockConvertibleConversionPrice_iI_pid_c20250228__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--InvestorMember__us-gaap--StatementClassOfStockAxis__custom--SeriesAConvertiblePreferredStockMember_zCLQQn59XxYd" title="Conversion price">2.332</span> per share of common stock.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company conducted an initial offering, which included the sale of Series A Preferred Stock through a Registered Direct Offering (the “Registered Direct Offering”) and a Private Placement pursuant to the Purchase Agreement (the “Private Placement”). In the Private Placement, the Company agreed to sell: (i) <span id="xdx_903_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20250201__20250228__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zx3FJsjepozh" title="Number of shares issued">170</span> additional shares of Series A Preferred Stock at the same price as in the Registered Direct Offering, with a conversion price of $<span id="xdx_907_eus-gaap--PreferredStockConvertibleConversionPrice_iI_pid_c20250228__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zPBWAMwrCwzf" title="Conversion price">2.332</span> per share, and (ii) <span id="xdx_90E_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pid_c20250228__us-gaap--StatementEquityComponentsAxis__custom--PrivatePlacementConvertiblePreferredWarrantsMember_zVqU6jCkvGve" title="Warrant issued">20</span> warrants (the “Private Placement Convertible Preferred Warrants”) to purchase up to <span id="xdx_903_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pid_c20250228__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zZ4nvXjGcgib" title="Warrant issued">4,000</span> shares of Series A Preferred Stock at $<span id="xdx_90C_eus-gaap--SharePrice_iI_pid_c20250228__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zt6vAnO5fCeh" title="Share price">10,000</span> per share. The Floor Price for the Series A Preferred Stock sold in the Private Placement is $<span id="xdx_90F_eus-gaap--DerivativeFloorPrice_iI_pid_uUSDPShares_c20250228__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_z37ntgImtt79" title="Floor price">0.424</span>.These terms are subject to adjustments for corporate events like stock splits.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In total, the Company sold <span id="xdx_908_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20250201__20250228__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_z9T6GQWHGexj" title="Sale of stock">350</span> shares of Series A Preferred Stock and <span id="xdx_90C_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20250201__20250228__us-gaap--StatementEquityComponentsAxis__custom--PrivatePlacementConvertiblePreferredWarrantsMember_zE4DI07kgPlh" title="Sale of stock">20</span> Private Placement Convertible Preferred Warrants, raising approximately $<span id="xdx_905_eus-gaap--ProceedsFromIssuanceOrSaleOfEquity_pn5n6_c20250201__20250228_za9yLFvKnN5k" title="Net proceeds">3.2</span> million in net proceeds, which will be used for working capital and other general purposes.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Upon stockholder approval and registration effectiveness, the investor is required to purchase (the “Second Closing”) an additional <span id="xdx_90A_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20250201__20250228__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--InvestorMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zhcCbD0Jn7m3" title="Number of shares issued">450</span> shares of Series A Preferred Stock (the “Second Closing Preferred Shares”) at the Second Closing, with terms similar to the Initial Offering, except for the conversion and floor prices, which will be determined.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company filed a Certificate of Designation of the Powers, Preferences and Relative, Participating, Optional and Other Restrictions of Series A Convertible Preferred Stock of the Company (the “Certificate of Designation”) with the Secretary of State of the State of Nevada to establish the rights, privileges, preferences, and restrictions of the Series A Preferred Stock. As set forth in the Certificate of Designation, the Company designated <span id="xdx_904_eus-gaap--TemporaryEquitySharesAuthorized_iI_pid_c20250331__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zBSuv6vukxuk" title="Preferred stock shares authorized">5,000</span> shares of preferred stock as Series A Preferred Stock. The following is a summary of the principal terms of the Certificate of Designation:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>General</i>. Each share of Series A Preferred Stock has a stated value of $<span id="xdx_90E_eus-gaap--PreferredStockParOrStatedValuePerShare_iI_pid_c20250331__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zRgzZbqOU0Tk" title="Preferred stock, stated value">10,000</span> per share (the “Series A Stated Value”) and, when issued, the Series A Preferred Stock will be fully paid and non-assessable.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Ranking</i>. The Series A Preferred Stock ranks senior to all other Company capital stock for dividends, distributions, and liquidation payments, unless otherwise approved by the Required Holder (as defined in the Certificate of Designation).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 10 – Series A Preferred Stock (Continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Dividends</i>. Series A Preferred Stock holders are entitled to receive <span id="xdx_907_ecustom--PrecentageOfPreferredStockEntitledToAnnualDividends_pid_dp_c20250101__20250331__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zkILUz6odZpb" title="Precentage of preferred stock entitled to annual dividends">8</span>% annual dividends, starting from issuance, payable quarterly in arrears in cash or additional Series A Preferred Stock (defaulting to in-kind unless stated otherwise). If a Triggering Event (as defined in the Certificate of Designation) occurs, the rate increases to up to the lesser of <span id="xdx_90E_ecustom--PrecentageOfPreferredStockEntitledToAnnualDividends_pid_dp_c20250101__20250331__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember__srt--RangeAxis__srt--MaximumMember_zTRwtzwDUBA7" title="Precentage of preferred stock entitled to annual dividends">18</span>% or maximum rate permitted under applicable law until resolved.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Conversion at Option of Holder</i>. Holders may convert their Series A Preferred Stock into common stock at any time after issuance, subject to ownership limits and the issuable maximum, at a rate based on the Conversion Amount (as defined below), divided by the Conversion Price (as defined below), and subject to a Floor Price.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Voluntary Adjustment Right</i>. Subject to the rules and regulations of Nasdaq, the Company has the right, at any time, with the written consent of the Required Holder, to lower the fixed conversion price to any amount and for any period of time deemed appropriate by the Company’s board of directors.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Alternate Conversion at the Holder’s Election</i>. At the holder’s option, at any time, the holder may convert (an “Alternate Conversion”) some or all of such holder’s Series A Preferred Stock, at a conversion price equal to the lower of (i) the applicable Conversion Price as in effect on the date of such Alternate Conversion, and (ii) the greater of (x) the Floor Price and (y) <span id="xdx_90E_ecustom--PrecentageOfVolumeWeightedAveragePrice_pid_dp_c20250101__20250331__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zgfVXEgOKxtd" title="Precentage of volume weighted average price">90</span>% of the lowest VWAP (as defined in the Certificate of Designation) of the common stock during the ten (10) consecutive trading day period ending and including the trading day immediately preceding the delivery or deemed delivery of the applicable conversion notice as set forth in the Certificate of Designation (the “Alternate Conversion Price”).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">With respect to each share of Series A Preferred Stock, as of the applicable date of determination, the “Conversion Amount” is equal to the sum of (1) <span id="xdx_906_ecustom--PrecentageOfConversionAmountPlus_pid_dp_c20250101__20250331__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zi3nb7htFs3h" title="Precentage of conversion amount plus">120</span>% of (i) the Series A Stated Value plus (ii) all declared and unpaid dividends on such shares as of such date of determination plus (2) any other amounts thereon owed to such holder, pursuant to this Certificate of Designations or any other Transaction Document (as defined in the Certificate of Designation) that have not otherwise been paid or satisfied.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Conversion Price varies depending on the issuance circumstances of the Series A Preferred Stock and is subject to adjustments. <span id="xdx_902_eus-gaap--PreferredUnitsDescription_c20250101__20250331__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zmAJlN69AKQc" title="Preferred stock, description">(i) for Series A Preferred Stocks issued in the Registered Direct Offering and at the initial closing of the Private Placement, the Conversion Price is fixed at $2.332 per share (the “Initial Conversion Price”); (ii) for Series A Preferred Stocks issued at the Second Closing or upon the exercise of a Private Placement Warrant (excluding cases under points (iii) and (iv) below), the Conversion Price is the lower of (x) the Initial Conversion Price and (y) 110% of the last closing trade price on the trading day before the Second Closing, relevant Funding Date, or Exercise Date (as defined in each Private Placement Warrant); (iii) if a Series A Preferred Stock is issued upon warrant exercise when certain equity conditions are not met, the Conversion Price is the lower of (A) $3.50 and (B) 110% of the closing price on the trading day before delivery of the Exercise or Call Notice; And (iv) if warrants are exercised after the Registration Effectiveness Date (as defined in the Certificate of Designation) and the common stock has traded above $10.00 for 20 consecutive trading days, and equity conditions are not met, the Conversion Price will be 110% of the closing price on the trading day before the Exercise or Call Notice.</span> In all cases, the Conversion Price is subject to proportional adjustments in the event of stock splits, dividends, combinations, and/or similar corporate actions and as set forth below under “Other Adjustments” below.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b><span style="font-variant: small-caps; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp.</b></span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 10 – Series A Preferred Stock (Continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Floor Price varies based on when and how the Series A Preferred Stock is issued: (i) for Series A Preferred Stocks sold in the Registered Direct Offering, the Floor Price is $<span id="xdx_904_eus-gaap--DerivativeFloorPrice_iI_pid_uUSDPShares_c20250331__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zGl8SxSeEij7" title="Floor price">1.00</span>; (ii) for Series A Preferred Stocks sold at the initial closing of the Private Placement, it is $<span id="xdx_908_eus-gaap--SaleOfStockPricePerShare_iI_pid_c20250331__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember_zjGZtRTN3pcf" title="Sale of stock, par value">0.424</span>, which represents 20% of the Nasdaq Minimum Price of the common stock on the trading day before the Purchase Agreement was signed; (iii) for Series A Preferred Stocks issued after the initial closing—including those in the Second Closing—the Floor Price is 20% of the Nasdaq Minimum Price as of the trading day immediately before issuance. If, after six months from the initial issuance date, the current Floor Price exceeds the Adjusted Floor Price (as defined in the Certificate of Designation), the Required Holder may elect to lower the Floor Price to the Adjusted Floor Price, subject to Nasdaq approval. Both the Floor Price and Adjusted Floor Price are subject to proportional adjustments for stock splits, dividends, combinations, and/or similar corporate events.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Other Adjustments</i>. Until stockholder approval is obtained, the Company may not issue more than <span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20250101__20250331__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zM0qtIHiDCT3" title="Number of shares issued">1,450,489</span> shares of common stock upon conversion of the Series A Preferred Stock and in certain related transactions—an amount equal to <span id="xdx_905_ecustom--PrecentageOfOutstandingShares_iI_pid_dp_c20250331__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zzYuVxvkYZs7" title="Precentage of outstanding shares">19.99</span>% of the total outstanding shares as of February 26, 2025—subject to adjustments for stock splits, recapitalizations, and similar events (the “Issuable Maximum”). This limit applies collectively to all conversions of Series A Preferred Stock and related securities. Additionally, if the Company issues common stock at a price lower than the then-current Conversion Price (the “New Issuance Price”), the Conversion Price will be adjusted downward to the New Issuance Price.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Purchase Rights</i>. If the Company issues options, convertible securities, or other purchase rights to acquire stock or property to all or most holders of common stock (“Purchase Rights”), holders of Series A Preferred Stock will also be entitled to receive these rights. Each holder may acquire the same Purchase Rights as if they had already converted all of their Series A Preferred Stock into common stock at the Alternate Conversion Price, subject to the Beneficial Ownership Limitation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Liquidation Preference</i>. Each share of Series A Preferred Stock carries a liquidation preference equal to the greater of (A) the conversion of such Series A Preferred Stock on the date of such payment and (B) the amount per share such holder would receive if such holder converted such Series A Preferred Stock into common stock immediately prior to the date of such payment.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Mandatory Redemption Triggering Event</i>. Upon any Mandatory Triggering Event (as defined in the Certificate of Designation), the Company shall immediately redeem in cash all amounts due under the Series A Preferred Stock at a redemption price equal to the Conversion Amount to be redeemed.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Voting Rights</i>. Holders of Series A Preferred Stock have no voting power, cannot vote on any matters, and cannot call or participate in shareholder meetings, except as outlined in the Certificate of Designation or required by law. The Company cannot take certain actions without the prior consent of the Required Holder, including: (a) altering the powers, preferences, or rights of the Series A Preferred Stock or amending the Certificate of Designation, (b) creating any stock class senior or pari passu to the Series A Preferred Stock, (c) amending the articles of incorporation in ways that negatively affect the Series A Preferred Stock rights, (d) changing the number of authorized Series A Preferred Stock, (e) paying dividends or making distributions on common stock, (f) purchasing or redeeming junior capital stock, (g) issuing Series A Preferred Stock outside the agreed terms, or (h) circumventing any rights set forth in the Certificate of Designation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><span style="font-variant: small-caps; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp.</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 10 – Series A Preferred Stock (Continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Change of Control Exchange</i>. Upon a change of control of the Company, each holder may require the Company to exchange such holder’s shares of Series A Preferred Stock for consideration equal to the Conversion Amount (or (1) the Series A Stated Value thereof plus (2) all declared and unpaid dividends on such shares as of such date of determination plus (3) any other amounts thereon owed to such holder, pursuant to the Certificate of Designation or any other Transaction Document that have not otherwise been paid or satisfied, in the case of any shares of Series A Preferred Stock funded following the Announcement Time (as defined in the Certificate of Designation) but prior to the date of the change of control.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Company Optional Redemption</i>. The Company can redeem all or part of the outstanding Series A Preferred Stock at any time by sending a written notice to each holder. The redemption price is generally the Conversion Amount, but may be the Stated Value in certain cases. If a Triggering Event has occurred, the price will be the greater of (i) the Conversion Amount or (ii) the product of the Conversion Rate and the average of the five highest daily VWAPs of the common stock from the day before the company optional redemption notice to the day before the payment is required.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Fundamental Transactions</i>. The Certificate of Designation prevents the Company from engaging in fundamental transactions, such as mergers or business combinations, unless it (or its successor) assumes all obligations under the Certificate of Designation and Transaction Documents, or redeems all outstanding Series A Preferred Stock.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Covenants</i>. The Certificate of Designation imposes several restrictions on the Company, including prohibiting the redemption, repurchase, or declaration of dividends on capital stock (except as required), incurring debt (except Permitted Indebtedness), entering into affiliate transactions, or creating liens without the Required Holder’s prior consent. Additionally, the Company cannot issue Series A Preferred Stock or other securities that would violate the Certificate of Designation or issue securities below the current Floor Price.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company evaluated the features of the Series A Preferred Stock to determine if any needed to be bifurcated as embedded derivatives. It concluded that the conversion feature is closely related to the host contract, while the redemption feature qualifies for bifurcation as a derivative. However, the initial fair value of the bifurcated derivative is immaterial because the likelihood of such redemption feature being triggered is remote. The fair value of this bifurcated derivative liability is remeasured to fair value each reporting period, with material changes, if any, recorded in the consolidated statement of operations and comprehensive loss. While the host contract is considered as an equity-classified instrument, it includes provisions that allow the investor to redeem the instrument for cash or other assets upon the occurrence of events that are not solely within the company’s control, the Series A Preferred Stock is classified as mezzanine equity.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a result, the Company bifurcated the Series A Preferred Stock into (i) the host contract, classified within mezzanine equity, and (ii) the bifurcated derivative liability related to the redemption feature.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The proceeds from the Initial Offerings were allocated first to the fair value of the Private Placement Convertible Preferred Warrants, with the remaining balance allocated to the Series A Preferred Stock. The Private Placement Convertible Preferred Warrants do not meet equity classification requirements under ASC 815-40, so they are treated as derivative liabilities, remeasured to fair value each reporting period, with changes recorded in the consolidated statement of operations and comprehensive loss. However, as described in Note 9 above, the Company deemed the fair value of the warrants to be immaterial for initial recognition.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From the issuance date through March 31, 2025, <span id="xdx_90A_eus-gaap--ConversionOfStockSharesConverted1_c20250201__20250331__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_z60Ldg2sUMpc" title="Shares converted">30</span> shares of Series A Preferred Stock were converted into <span id="xdx_902_eus-gaap--ConversionOfStockSharesConverted1_c20250201__20250331__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zvXJJ3Yo5Bda" title="Shares converted">311,887</span> shares of common stock. As a result, $<span id="xdx_90B_eus-gaap--ConversionOfStockAmountConverted1_pn3n3_c20250201__20250331__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zJ64QVt45Pl4" title="Shares converted, value">273</span> (net of offering costs) was reclassified from mezzanine equity to common stock and additional paid-in capital. Subsequent to March 31, 2025, <span id="xdx_901_eus-gaap--ConversionOfStockSharesConverted1_c20250401__20250515__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zcrFoUJMU2k1" title="Shares converted">105</span> shares of Series A Preferred Stock were converted into <span id="xdx_90D_eus-gaap--ConversionOfStockSharesConverted1_c20250401__20250515__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zN88fmD9Ibs" title="Shares converted">1,933,420</span> shares of common stock at a conversion price of $<span id="xdx_90C_eus-gaap--CommonStockConvertibleConversionPriceIncrease_pid_c20250401__20250515__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zFt67ZqFPLGk" title="Conversion price">0.66</span> per share of common stock. As a result, $<span id="xdx_901_eus-gaap--ConversionOfStockAmountConverted1_pn3n3_c20250401__20250515__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zuglt6y514E2" title="Shares converted, value">962</span> (net of offering costs) was reclassified from mezzanine equity to common stock and additional paid-in capital.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><span style="font-variant: small-caps; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp.</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> 180 0.0001 10000 0.0001 2.332 170 2.332 20 4000 10000 0.424 350 20 3200000 450 5000 10000 0.08 0.18 0.90 1.20 (i) for Series A Preferred Stocks issued in the Registered Direct Offering and at the initial closing of the Private Placement, the Conversion Price is fixed at $2.332 per share (the “Initial Conversion Price”); (ii) for Series A Preferred Stocks issued at the Second Closing or upon the exercise of a Private Placement Warrant (excluding cases under points (iii) and (iv) below), the Conversion Price is the lower of (x) the Initial Conversion Price and (y) 110% of the last closing trade price on the trading day before the Second Closing, relevant Funding Date, or Exercise Date (as defined in each Private Placement Warrant); (iii) if a Series A Preferred Stock is issued upon warrant exercise when certain equity conditions are not met, the Conversion Price is the lower of (A) $3.50 and (B) 110% of the closing price on the trading day before delivery of the Exercise or Call Notice; And (iv) if warrants are exercised after the Registration Effectiveness Date (as defined in the Certificate of Designation) and the common stock has traded above $10.00 for 20 consecutive trading days, and equity conditions are not met, the Conversion Price will be 110% of the closing price on the trading day before the Exercise or Call Notice. 1.00 0.424 1450489 0.1999 30 311887 273000 105 1933420 0.66 962000 <p id="xdx_800_eus-gaap--StockholdersEquityNoteDisclosureTextBlock_zjL2oEkoZez4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 11 - <span id="xdx_82E_zjU9JgbgtRpe">COMMON STOCK</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">No dividends on common stock had been declared by the Company.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p id="xdx_89B_ecustom--SummaryOfReservedSharesOfCommonStockForIssuanceTableTextBlock_zbNhWYEChjlh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the three months ended March 31, 2025 and 2024, the Company had reserved shares of common stock for issuance as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span id="xdx_8B6_zaFsmh03hz38" style="display: none">SUMMARY OF RESERVED SHARES OF COMMON STOCK FOR ISSUANCE</span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 84%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20250331_zJyZNE9e0GH2" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2025</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49D_20240331_zo3todf97Cvc" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2024</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_40C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardIssuedAndOptionsOutstanding_iI_pid_zuS2pO8qCqQk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Options issued and outstanding</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">161,939</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">257,255</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--CommonStockSharesOutstanding_iI_pid_zjDrK8Xnuxr5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Common stock outstanding</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,589,642</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,695,587</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_pid_zc4rhphHKge6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Warrants outstanding</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">52,256,156</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,723,400</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_ecustom--EarnoutShares_iI_pid_z4DYLWGNdL3d" style="vertical-align: bottom; background-color: White"> <td>Earnout shares</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,777,778</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,777,778</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--PreferredStockSharesOutstanding_iI_pid_hus-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zqnbZjgBNtV4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Series A Preferred Stock outstanding</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,840,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1435">-</span></td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant_iI_pid_zOPiLxapTXAb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Shares available for future issuance</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,227,247</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,220,725</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_zoLVlUYLw2ja" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">67,852,762</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">13,674,745</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A4_zjXKgdn8113g" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>ChEF Equity Facility</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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 $<span id="xdx_908_ecustom--PlanOfMergerMaximumAggregatePurchasePrice_pn6n6_c20250101__20250331__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__dei--LegalEntityAxis__custom--ChardanCapitalMarketsLLCMember_zDS0F4BFCW3a" title="Aggregated purchase price">150</span> 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. Under the terms of the Purchase Agreement with CCM LLC, the Company issued <span id="xdx_90B_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20250101__20250331__dei--LegalEntityAxis__custom--ChardanCapitalMarketsLLCMember__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember_z5zxxEg5th14" title="Number of shares issued">23,160</span> shares for aggregate net proceeds to the Company of $<span id="xdx_907_eus-gaap--StockIssuedDuringPeriodValueNewIssues_pn3n3_c20250101__20250331__dei--LegalEntityAxis__custom--ChardanCapitalMarketsLLCMember__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember_zPnnUozGYaZd" title="Number of shares issued, value">63</span> from the period January 1, 2025 through March 31, 2025. <span id="xdx_901_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_do_c20240101__20240331__dei--LegalEntityAxis__custom--ChardanCapitalMarketsLLCMember__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember_zXkAGyi260Ra" title="Number of shares issued">No</span> issuances occurred for the period of January 1, 2024 through March 31, 2024.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b><span style="font-variant: small-caps; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp.</b></span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p id="xdx_89B_ecustom--SummaryOfReservedSharesOfCommonStockForIssuanceTableTextBlock_zbNhWYEChjlh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the three months ended March 31, 2025 and 2024, the Company had reserved shares of common stock for issuance as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span id="xdx_8B6_zaFsmh03hz38" style="display: none">SUMMARY OF RESERVED SHARES OF COMMON STOCK FOR ISSUANCE</span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 84%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20250331_zJyZNE9e0GH2" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2025</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49D_20240331_zo3todf97Cvc" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2024</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_40C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardIssuedAndOptionsOutstanding_iI_pid_zuS2pO8qCqQk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Options issued and outstanding</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">161,939</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">257,255</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--CommonStockSharesOutstanding_iI_pid_zjDrK8Xnuxr5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Common stock outstanding</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,589,642</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,695,587</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_pid_zc4rhphHKge6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Warrants outstanding</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">52,256,156</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,723,400</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_ecustom--EarnoutShares_iI_pid_z4DYLWGNdL3d" style="vertical-align: bottom; background-color: White"> <td>Earnout shares</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,777,778</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,777,778</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--PreferredStockSharesOutstanding_iI_pid_hus-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zqnbZjgBNtV4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Series A Preferred Stock outstanding</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,840,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1435">-</span></td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant_iI_pid_zOPiLxapTXAb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Shares available for future issuance</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,227,247</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,220,725</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_zoLVlUYLw2ja" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">67,852,762</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">13,674,745</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 161939 257255 7589642 6695587 52256156 2723400 2777778 2777778 3840000 1227247 1220725 67852762 13674745 150000000 23160 63000 0 <p id="xdx_800_eus-gaap--DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock_zYoHkOu6grs8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 12 - <span id="xdx_827_z74mHHEBfkgc">STOCK-BASED COMPENSATION</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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 <span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant_iI_pid_c20250331__us-gaap--PlanNameAxis__custom--EmployeeStockPurchasePlanMember_zYpLp6M0nsa8" title="Issuance of shares">273,822</span> 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) <span id="xdx_901_ecustom--OutstandingSharesPercentage_pid_dp_uPure_c20250101__20250331__us-gaap--PlanNameAxis__custom--EmployeeStockPurchasePlanMember_zTPtfT63M1Ed" title="Outstanding shares percentage">1%</span> of the total number of outstanding shares of the Company’s common stock on December 31 in the prior year, (2) <span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20250101__20250331__us-gaap--PlanNameAxis__custom--EmployeeStockPurchasePlanMember_z46Ip8BHYLC8" title="Issuance of shares">166,667</span> shares, or (3) such number as determined by the Company’s board of directors.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the three months ended March 31, 2025 and 2024, the Company did not issue any shares of common stock under the ESPP.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_89A_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_zS4cM7xSnssa" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A summary of the Company’s option activity and related information follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span id="xdx_8BD_zCiHkcvCqhrg" style="display: none">SCHEDULE OF OPTION ACTIVITY AND RELATED INFORMATION</span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 92%; margin-left: 0.25in"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Number of Options</td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="margin-top: 0; margin-bottom: 0">Weighted-</p> <p style="margin-top: 0; margin-bottom: 0">Average Exercise Price</p></td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="margin-top: 0; margin-bottom: 0">Weighted-</p> <p style="margin-top: 0; margin-bottom: 0">Average Grant Date Fair Value</p></td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="margin-top: 0; margin-bottom: 0">Weighted-</p> <p style="margin-top: 0; margin-bottom: 0">Average Remaining Contractual Life (in years)</p></td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Aggregate intrinsic value</td><td style="text-align: center; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; width: 35%">Balances, January 1, 2025</td><td style="width: 1%"> </td> <td style="text-align: left; width: 1%"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pid_c20250101__20250331_z8Mnh0qrLCvk" style="text-align: right; width: 10%" title="Number of Options, Balance at the beginning">168,809</td><td style="text-align: left; width: 1%"> </td><td style="width: 1%"> </td> <td style="text-align: left; width: 1%">$</td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pid_c20250101__20250331_zOl4jMsZzbSi" style="text-align: right; width: 10%" title="Weighted- Average Exercise Price - Balances at the beginning">25.97</td><td style="text-align: left; width: 1%"> </td><td style="width: 1%"> </td> <td style="text-align: left; width: 1%">$</td><td id="xdx_986_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iS_pid_c20250101__20250331_znnvKwBGuLF1" style="text-align: right; width: 10%" title="Weighted- Average Grant Date Fair Value, Balances at the beginning">25.97</td><td style="text-align: left; width: 1%"> </td><td style="width: 1%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 10%"><span id="xdx_90F_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20240101__20241231_zhqm09LWiaLj" title="Weighted- Average Remaining Contractual Life (in years)">6.50</span></td><td style="text-align: left; width: 1%"> </td><td style="width: 1%"> </td> <td style="text-align: left; width: 1%">$</td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iS_pn3n3_c20250101__20250331_zxp0Ms5Uwbuj" style="text-align: right; width: 10%" title="Aggregate Intrinsic value Balances at the beginning"><span style="-sec-ix-hidden: xdx2ixbrl1469">-</span></td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Options granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20250101__20250331_zJqZIwqmhbQf" style="text-align: right" title="Number of Options, Balance at the beginning"><span style="-sec-ix-hidden: xdx2ixbrl1471">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pid_c20250101__20250331_z1p1U16LmZz5" style="text-align: right" title="Weighted- Average Exercise Price - Balances at the beginning"><span style="-sec-ix-hidden: xdx2ixbrl1473">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_c20250101__20250331_zdICRhLMmvZf" style="text-align: right" title="Weighted- Average Grant Date Fair Value, Balances at the beginning"><span style="-sec-ix-hidden: xdx2ixbrl1475">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGrantDateIntrinsicValue_pn3n3_c20250101__20250331_zyivLmsRYgN6" style="text-align: right" title="Aggregate Intrinsic value Balances at the beginning"><span style="-sec-ix-hidden: xdx2ixbrl1477">-</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Options forfeited</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_iN_pid_di_c20250101__20250331_zuoYvSKEP026" style="text-align: right" title="Number of Options, Balance at the beginning">(1,594</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice_pid_c20250101__20250331_zes8TuIWXgkf" style="text-align: right" title="Weighted- Average Exercise Price - Balances at the beginning">35.32</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedWeightedAverageGrantDateFairValue_pid_c20250101__20250331_zR6YkgZFd2Yk" style="text-align: right" title="Weighted- Average Grant Date Fair Value, Balances at the beginning">35.32</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeitedInPeriodTotalIntrinsicValue_pn3n3_c20250101__20250331_zW7Wgg3Wo1gl" style="text-align: right" title="Aggregate Intrinsic value Balances at the beginning"><span style="-sec-ix-hidden: xdx2ixbrl1485">-</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Options expired</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpiredInPeriod_iN_pid_di_c20250101__20250331_zybpQSf2Fko3" style="text-align: right" title="Number of Options, Balance at the beginning">(5,276</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice_pid_c20250101__20250331_zJCaqV75EbF2" style="text-align: right" title="Weighted- Average Exercise Price - Balances at the beginning">32.87</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsExpiredWeightedAverageGrantDateFairValue_pid_c20250101__20250331_zIU45Hii6SO" style="text-align: right" title="Weighted- Average Grant Date Fair Value, Balances at the beginning">32.87</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpiredInPeriodTotalIntrinsicValue_pn3n3_c20250101__20250331_zJmjLfJftku5" style="text-align: right" title="Aggregate Intrinsic value Balances at the beginning"><span style="-sec-ix-hidden: xdx2ixbrl1493">-</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Options exercised</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_pid_di_c20250101__20250331_zs8O0ktO2Puc" style="border-bottom: Black 1pt solid; text-align: right" title="Number of Options, Balance at the beginning"><span style="-sec-ix-hidden: xdx2ixbrl1495">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_c20250101__20250331_zB5f85mLjEid" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted- Average Exercise Price - Balances at the beginning"><span style="-sec-ix-hidden: xdx2ixbrl1497">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedWeightedAverageGrantDateFairValue_pid_c20250101__20250331_zslVZ8cOkOPa" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted- Average Grant Date Fair Value, Balances at the beginning"><span style="-sec-ix-hidden: xdx2ixbrl1499">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue_pn3n3_c20250101__20250331_zEEaPNqgTmZ4" style="border-bottom: Black 1pt solid; text-align: right" title="Aggregate Intrinsic value Balances at the beginning"><span style="-sec-ix-hidden: xdx2ixbrl1501">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Balances, March 31, 2025</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pid_c20250101__20250331_z6vOQ8Ojfnv1" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of Options, Balance at the beginning">161,939</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pid_c20250101__20250331_zRQGPar42lf2" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted- Average Exercise Price - Balances at the beginning">25.66</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iE_pid_c20250101__20250331_zaQeZMtLMvhj" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted- Average Grant Date Fair Value, Balances at the beginning">25.66</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_90E_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20250101__20250331_z9g5DvepBvW8" title="Weighted- Average Remaining Contractual Life (in years)">6.53</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iE_pn3n3_c20250101__20250331_zTEdpcVpEiG2" style="border-bottom: Black 2.5pt double; text-align: right" title="Aggregate Intrinsic value Balances at the beginning"><span style="-sec-ix-hidden: xdx2ixbrl1511">-</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Number of Options, Balance at the beginning"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Weighted- Average Exercise Price - Balances at the beginning">  </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Weighted- Average Grant Date Fair Value, Balances at the beginning"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Aggregate Intrinsic value Balances at the beginning"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">At March 31, 2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Number of Options, Balance at the beginning"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Weighted- Average Exercise Price - Balances at the beginning"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Weighted- Average Grant Date Fair Value, Balances at the beginning"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Aggregate Intrinsic value Balances at the beginning">              </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Vested and Exercisable</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableNumber_iE_pid_c20250101__20250331_zvD1W2uTTBJf" style="text-align: right" title="Number of Options, Balance at the beginning">147,703</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageExercisePrice_iE_pid_c20250101__20250331_zL6gXfF6K8ng" style="text-align: right" title="Weighted- Average Exercise Price - Balances at the beginning">24.74</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Weighted- Average Grant Date Fair Value, Balances at the beginning"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_904_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageRemainingContractualTerm1_dtY_c20250101__20250331_zDAgbXl62pEh" title="Weighted- Average Remaining Contractual Life (in years), Vested and Exercisable">6.47</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableAggregateIntrinsicValue_iE_pn3n3_c20250101__20250331_zPLN87ryDu0l" style="text-align: right" title="Aggregate Intrinsic value Balances at the beginning"><span style="-sec-ix-hidden: xdx2ixbrl1519">-</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Vested and expected to vest</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingNumber_iE_pid_c20250101__20250331_zDIWbcg4gxxh" style="text-align: right" title="Number of Options, Balance at the beginning">161,939</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageExercisePrice_iE_pid_c20250101__20250331_zJIAzurBCtRg" style="text-align: right" title="Weighted- Average Exercise Price - Balances at the beginning">25.66</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Weighted- Average Grant Date Fair Value, Balances at the beginning"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_905_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1_dtY_c20250101__20250331_zGGOTHrYGB9i" title="Weighted- Average Remaining Contractual Life (in years), Vested and expected to vest">6.53</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingAggregateIntrinsicValue_iE_pn3n3_c20250101__20250331_zcdG5slLFMda" style="text-align: right" title="Aggregate Intrinsic value Balances at the beginning"><span style="-sec-ix-hidden: xdx2ixbrl1527">-</span></td><td style="text-align: left"> </td></tr> </table> <p id="xdx_8A2_zTRrrz5CiAed" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the three months ended March 31, 2025, the Company did not issue any stock options.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Share-based compensation expense for options and RSUs totaling $<span id="xdx_907_eus-gaap--ShareBasedCompensation_pn3n3_c20250101__20250331_zPGKHPZuct4i" title="Total compensation">220</span> and $<span id="xdx_908_eus-gaap--ShareBasedCompensation_pn3n3_c20240101__20240331_zFWgWUM3eTxh" title="Total compensation">266</span> was recognized in the Company’s condensed consolidated statements of operations for the three months ended March 31, 2025 and 2024, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Of the $<span id="xdx_903_eus-gaap--ShareBasedCompensation_pn3n3_c20250101__20250331_zeiGI1HGXpq7" title="Total compensation">220</span> of share-based compensation incurred during the three months ended March 31, 2025, $<span id="xdx_908_eus-gaap--ShareBasedCompensation_pn3n3_c20250101__20250331__us-gaap--IncomeStatementLocationAxis__us-gaap--CostOfSalesMember_zhFVCexblNd8" title="Total compensation">18</span> is allocated to cost of goods sold, $<span id="xdx_90E_eus-gaap--ShareBasedCompensation_pn3n3_c20250101__20250331__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_zpjdxicqXDL2" title="Total compensation">14</span> to research and development, $<span id="xdx_907_eus-gaap--ShareBasedCompensation_pn3n3_c20250101__20250331__us-gaap--IncomeStatementLocationAxis__us-gaap--SellingAndMarketingExpenseMember_zfWcIXcyvSU1" title="Total compensation">61</span> to selling and marketing, and $<span id="xdx_90A_eus-gaap--ShareBasedCompensation_pn3n3_c20250101__20250331__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_zNWUh90ZATK2" title="Total compensation">127</span> to general and administrative expenses. Of the $<span id="xdx_90D_eus-gaap--ShareBasedCompensation_pn3n3_c20240101__20240331_z4WjzWkOKr56" title="Total compensation">266</span> of share-based compensation incurred during the three months ended March 31, 2024, $<span id="xdx_90E_eus-gaap--ShareBasedCompensation_pn3n3_c20240101__20240331__us-gaap--IncomeStatementLocationAxis__us-gaap--CostOfSalesMember_zxeJ1Vj8sTSi" title="Total compensation">32</span> is allocated to cost of goods sold, $<span id="xdx_902_eus-gaap--ShareBasedCompensation_pn3n3_c20240101__20240331__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_zaFKS2DsGkP" title="Total compensation">65</span> to research and development, $<span id="xdx_906_eus-gaap--ShareBasedCompensation_pn3n3_c20240101__20240331__us-gaap--IncomeStatementLocationAxis__us-gaap--SellingAndMarketingExpenseMember_zigjRjcfZF2g" title="Total compensation">60</span> to selling and marketing, and $<span id="xdx_90D_eus-gaap--ShareBasedCompensation_pn3n3_c20240101__20240331__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_zTpFnRw2H6g1" title="Share based compensation expense">109</span> to general and administrative expenses.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin: 0pt 0"><i>Restricted Stock Units</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 5, 2024, the Company granted <span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pid_c20240205__20240205__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zfvCFYuDv9i" title="Restricted stock units, granted">24,447</span> restricted stock units of which <span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_pid_c20240205__20240205__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zrTxFJDwJMrc" title="Restricted stock units, vested">11,111</span> vested immediately. The fair value of the <span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20240205__20240205__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zjuwcNu476vf" title="Restricted stock units, vested">24,447</span> restricted stock units was $<span id="xdx_90C_eus-gaap--StockIssuedDuringPeriodValueRestrictedStockAwardGross_pn3n3_c20240101__20240331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zFpdHNnW3KY2" title="Restricted stock units, value">95</span> and an expense of $<span id="xdx_90E_eus-gaap--AllocatedShareBasedCompensationExpense_pn3n3_c20240101__20240331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zVXHNR00OO76" title="Compensation expense">45</span> was recorded as compensation expense during the three months ended March 31, 2024.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"> </span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font: small-caps 10pt Times New Roman, Times, Serif; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp.</b></span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font: small-caps 10pt Times New Roman, Times, Serif; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font: small-caps 10pt Times New Roman, Times, Serif; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 12 - Stock-Based Compensation (continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Restricted Stock Units (Continued)</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_89C_eus-gaap--ScheduleOfUnvestedRestrictedStockUnitsRollForwardTableTextBlock_zttBpdESwDZ1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table presents the restricted stock units activity for the three months ended March 31, 2025 and 2024:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span id="xdx_8B1_zBGgnn7N54Rh" style="display: none">SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY</span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%; margin-left: 0.25in"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Number of <br/>Shares</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Weighted-Average Fair Market Value</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; width: 64%">Unvested shares, January 1, 2025</td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_pid_c20250101__20250331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zuWAw5jcx66k" style="text-align: right; width: 14%" title="Number of Shares, Unvested shares beginning balance">334,751</td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%">$</td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_pid_c20250101__20250331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z2DXOJCsLZ11" style="text-align: right; width: 14%" title="Weighted-Average Fair Market Value, Unvested shares beginning balance">4.54</td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Forfeited</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_pid_di_c20250101__20250331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zDlxKbLeJjMf" style="text-align: right" title="Number of Shares, Unvested shares beginning balance">(8,006</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_pid_c20250101__20250331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zYGMxpkYc9H5" style="text-align: right" title="Weighted-Average Fair Market Value, Unvested shares beginning balance">5.40</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Vested</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_iN_pid_di_c20250101__20250331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z1hBSZrZMCWi" style="border-bottom: Black 1pt solid; text-align: right" title="Number of Shares, Unvested shares beginning balance">(3,196</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_pid_c20250101__20250331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zHciO1ggBTdk" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted-Average Fair Market Value, Unvested shares beginning balance">5.45</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Unvested shares, March 31, 2025</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_pid_c20250101__20250331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zft0d55DnLF9" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of Shares, Unvested shares beginning balance">323,549</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_pid_c20250101__20250331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zvJaQkoFge0j" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted-Average Fair Market Value, Unvested shares beginning balance">4.51</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A7_zqia0VnDa3e" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2025 and 2024 there were <span id="xdx_90D_eus-gaap--ClassOfWarrantOrRightUnissued_iI_pid_c20250331__us-gaap--PlanNameAxis__custom--TwoThousandTwentyTwoEquityIncentiveAndEmployeeStockPurchasePlanMember_zCopUlvwF821" title="Unissued authorized and available for future awards">1,227,247</span> and <span id="xdx_906_eus-gaap--ClassOfWarrantOrRightUnissued_iI_pid_c20240331__us-gaap--PlanNameAxis__custom--TwoThousandTwentyTwoEquityIncentiveAndEmployeeStockPurchasePlanMember_zri4YQaWAGE7" title="Unissued authorized and available for future awards">1,220,725</span> shares, respectively, of unissued authorized and available for future awards under the 2022 Equity Incentive Plan and Employee Stock Purchase Plan.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> 273822 0.01 166667 <p id="xdx_89A_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_zS4cM7xSnssa" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A summary of the Company’s option activity and related information follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span id="xdx_8BD_zCiHkcvCqhrg" style="display: none">SCHEDULE OF OPTION ACTIVITY AND RELATED INFORMATION</span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 92%; margin-left: 0.25in"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Number of Options</td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="margin-top: 0; margin-bottom: 0">Weighted-</p> <p style="margin-top: 0; margin-bottom: 0">Average Exercise Price</p></td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="margin-top: 0; margin-bottom: 0">Weighted-</p> <p style="margin-top: 0; margin-bottom: 0">Average Grant Date Fair Value</p></td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"><p style="margin-top: 0; margin-bottom: 0">Weighted-</p> <p style="margin-top: 0; margin-bottom: 0">Average Remaining Contractual Life (in years)</p></td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Aggregate intrinsic value</td><td style="text-align: center; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; width: 35%">Balances, January 1, 2025</td><td style="width: 1%"> </td> <td style="text-align: left; width: 1%"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pid_c20250101__20250331_z8Mnh0qrLCvk" style="text-align: right; width: 10%" title="Number of Options, Balance at the beginning">168,809</td><td style="text-align: left; width: 1%"> </td><td style="width: 1%"> </td> <td style="text-align: left; width: 1%">$</td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pid_c20250101__20250331_zOl4jMsZzbSi" style="text-align: right; width: 10%" title="Weighted- Average Exercise Price - Balances at the beginning">25.97</td><td style="text-align: left; width: 1%"> </td><td style="width: 1%"> </td> <td style="text-align: left; width: 1%">$</td><td id="xdx_986_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iS_pid_c20250101__20250331_znnvKwBGuLF1" style="text-align: right; width: 10%" title="Weighted- Average Grant Date Fair Value, Balances at the beginning">25.97</td><td style="text-align: left; width: 1%"> </td><td style="width: 1%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 10%"><span id="xdx_90F_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20240101__20241231_zhqm09LWiaLj" title="Weighted- Average Remaining Contractual Life (in years)">6.50</span></td><td style="text-align: left; width: 1%"> </td><td style="width: 1%"> </td> <td style="text-align: left; width: 1%">$</td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iS_pn3n3_c20250101__20250331_zxp0Ms5Uwbuj" style="text-align: right; width: 10%" title="Aggregate Intrinsic value Balances at the beginning"><span style="-sec-ix-hidden: xdx2ixbrl1469">-</span></td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Options granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20250101__20250331_zJqZIwqmhbQf" style="text-align: right" title="Number of Options, Balance at the beginning"><span style="-sec-ix-hidden: xdx2ixbrl1471">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pid_c20250101__20250331_z1p1U16LmZz5" style="text-align: right" title="Weighted- Average Exercise Price - Balances at the beginning"><span style="-sec-ix-hidden: xdx2ixbrl1473">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_c20250101__20250331_zdICRhLMmvZf" style="text-align: right" title="Weighted- Average Grant Date Fair Value, Balances at the beginning"><span style="-sec-ix-hidden: xdx2ixbrl1475">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGrantDateIntrinsicValue_pn3n3_c20250101__20250331_zyivLmsRYgN6" style="text-align: right" title="Aggregate Intrinsic value Balances at the beginning"><span style="-sec-ix-hidden: xdx2ixbrl1477">-</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Options forfeited</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_iN_pid_di_c20250101__20250331_zuoYvSKEP026" style="text-align: right" title="Number of Options, Balance at the beginning">(1,594</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice_pid_c20250101__20250331_zes8TuIWXgkf" style="text-align: right" title="Weighted- Average Exercise Price - Balances at the beginning">35.32</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedWeightedAverageGrantDateFairValue_pid_c20250101__20250331_zR6YkgZFd2Yk" style="text-align: right" title="Weighted- Average Grant Date Fair Value, Balances at the beginning">35.32</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeitedInPeriodTotalIntrinsicValue_pn3n3_c20250101__20250331_zW7Wgg3Wo1gl" style="text-align: right" title="Aggregate Intrinsic value Balances at the beginning"><span style="-sec-ix-hidden: xdx2ixbrl1485">-</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Options expired</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpiredInPeriod_iN_pid_di_c20250101__20250331_zybpQSf2Fko3" style="text-align: right" title="Number of Options, Balance at the beginning">(5,276</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice_pid_c20250101__20250331_zJCaqV75EbF2" style="text-align: right" title="Weighted- Average Exercise Price - Balances at the beginning">32.87</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsExpiredWeightedAverageGrantDateFairValue_pid_c20250101__20250331_zIU45Hii6SO" style="text-align: right" title="Weighted- Average Grant Date Fair Value, Balances at the beginning">32.87</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpiredInPeriodTotalIntrinsicValue_pn3n3_c20250101__20250331_zJmjLfJftku5" style="text-align: right" title="Aggregate Intrinsic value Balances at the beginning"><span style="-sec-ix-hidden: xdx2ixbrl1493">-</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Options exercised</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_pid_di_c20250101__20250331_zs8O0ktO2Puc" style="border-bottom: Black 1pt solid; text-align: right" title="Number of Options, Balance at the beginning"><span style="-sec-ix-hidden: xdx2ixbrl1495">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_c20250101__20250331_zB5f85mLjEid" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted- Average Exercise Price - Balances at the beginning"><span style="-sec-ix-hidden: xdx2ixbrl1497">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedWeightedAverageGrantDateFairValue_pid_c20250101__20250331_zslVZ8cOkOPa" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted- Average Grant Date Fair Value, Balances at the beginning"><span style="-sec-ix-hidden: xdx2ixbrl1499">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue_pn3n3_c20250101__20250331_zEEaPNqgTmZ4" style="border-bottom: Black 1pt solid; text-align: right" title="Aggregate Intrinsic value Balances at the beginning"><span style="-sec-ix-hidden: xdx2ixbrl1501">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Balances, March 31, 2025</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pid_c20250101__20250331_z6vOQ8Ojfnv1" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of Options, Balance at the beginning">161,939</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pid_c20250101__20250331_zRQGPar42lf2" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted- Average Exercise Price - Balances at the beginning">25.66</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iE_pid_c20250101__20250331_zaQeZMtLMvhj" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted- Average Grant Date Fair Value, Balances at the beginning">25.66</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_90E_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20250101__20250331_z9g5DvepBvW8" title="Weighted- Average Remaining Contractual Life (in years)">6.53</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iE_pn3n3_c20250101__20250331_zTEdpcVpEiG2" style="border-bottom: Black 2.5pt double; text-align: right" title="Aggregate Intrinsic value Balances at the beginning"><span style="-sec-ix-hidden: xdx2ixbrl1511">-</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Number of Options, Balance at the beginning"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Weighted- Average Exercise Price - Balances at the beginning">  </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Weighted- Average Grant Date Fair Value, Balances at the beginning"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Aggregate Intrinsic value Balances at the beginning"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">At March 31, 2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Number of Options, Balance at the beginning"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Weighted- Average Exercise Price - Balances at the beginning"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Weighted- Average Grant Date Fair Value, Balances at the beginning"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Aggregate Intrinsic value Balances at the beginning">              </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Vested and Exercisable</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableNumber_iE_pid_c20250101__20250331_zvD1W2uTTBJf" style="text-align: right" title="Number of Options, Balance at the beginning">147,703</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageExercisePrice_iE_pid_c20250101__20250331_zL6gXfF6K8ng" style="text-align: right" title="Weighted- Average Exercise Price - Balances at the beginning">24.74</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Weighted- Average Grant Date Fair Value, Balances at the beginning"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_904_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageRemainingContractualTerm1_dtY_c20250101__20250331_zDAgbXl62pEh" title="Weighted- Average Remaining Contractual Life (in years), Vested and Exercisable">6.47</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableAggregateIntrinsicValue_iE_pn3n3_c20250101__20250331_zPLN87ryDu0l" style="text-align: right" title="Aggregate Intrinsic value Balances at the beginning"><span style="-sec-ix-hidden: xdx2ixbrl1519">-</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Vested and expected to vest</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingNumber_iE_pid_c20250101__20250331_zDIWbcg4gxxh" style="text-align: right" title="Number of Options, Balance at the beginning">161,939</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageExercisePrice_iE_pid_c20250101__20250331_zJIAzurBCtRg" style="text-align: right" title="Weighted- Average Exercise Price - Balances at the beginning">25.66</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Weighted- Average Grant Date Fair Value, Balances at the beginning"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_905_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1_dtY_c20250101__20250331_zGGOTHrYGB9i" title="Weighted- Average Remaining Contractual Life (in years), Vested and expected to vest">6.53</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingAggregateIntrinsicValue_iE_pn3n3_c20250101__20250331_zcdG5slLFMda" style="text-align: right" title="Aggregate Intrinsic value Balances at the beginning"><span style="-sec-ix-hidden: xdx2ixbrl1527">-</span></td><td style="text-align: left"> </td></tr> </table> 168809 25.97 25.97 P6Y6M 1594 35.32 35.32 5276 32.87 32.87 161939 25.66 25.66 P6Y6M10D 147703 24.74 P6Y5M19D 161939 25.66 P6Y6M10D 220000 266000 220000 18000 14000 61000 127000 266000 32000 65000 60000 109000 24447 11111 24447 95000 45000 <p id="xdx_89C_eus-gaap--ScheduleOfUnvestedRestrictedStockUnitsRollForwardTableTextBlock_zttBpdESwDZ1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table presents the restricted stock units activity for the three months ended March 31, 2025 and 2024:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span id="xdx_8B1_zBGgnn7N54Rh" style="display: none">SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY</span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%; margin-left: 0.25in"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Number of <br/>Shares</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Weighted-Average Fair Market Value</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; width: 64%">Unvested shares, January 1, 2025</td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_pid_c20250101__20250331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zuWAw5jcx66k" style="text-align: right; width: 14%" title="Number of Shares, Unvested shares beginning balance">334,751</td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%">$</td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_pid_c20250101__20250331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z2DXOJCsLZ11" style="text-align: right; width: 14%" title="Weighted-Average Fair Market Value, Unvested shares beginning balance">4.54</td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Forfeited</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_pid_di_c20250101__20250331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zDlxKbLeJjMf" style="text-align: right" title="Number of Shares, Unvested shares beginning balance">(8,006</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_pid_c20250101__20250331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zYGMxpkYc9H5" style="text-align: right" title="Weighted-Average Fair Market Value, Unvested shares beginning balance">5.40</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Vested</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_iN_pid_di_c20250101__20250331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z1hBSZrZMCWi" style="border-bottom: Black 1pt solid; text-align: right" title="Number of Shares, Unvested shares beginning balance">(3,196</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_pid_c20250101__20250331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zHciO1ggBTdk" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted-Average Fair Market Value, Unvested shares beginning balance">5.45</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Unvested shares, March 31, 2025</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_pid_c20250101__20250331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zft0d55DnLF9" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of Shares, Unvested shares beginning balance">323,549</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_pid_c20250101__20250331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zvJaQkoFge0j" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted-Average Fair Market Value, Unvested shares beginning balance">4.51</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 334751 4.54 8006 5.40 3196 5.45 323549 4.51 1227247 1220725 <p id="xdx_800_eus-gaap--SupplierFinanceProgramTextBlock_zDUKWjdY1Do3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 13 - <span id="xdx_82B_zLnxSCgi9ZDe">SUPPLIER AGREEMENT</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font: small-caps 10pt Times New Roman, Times, Serif; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font: small-caps 10pt Times New Roman, Times, Serif; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font: small-caps 10pt Times New Roman, Times, Serif; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p id="xdx_80A_eus-gaap--SegmentReportingDisclosureTextBlock_zU3a1ZHxCGQc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 14 - <span id="xdx_82E_zxvXpOKz9jYi">REPORTABLE SEGMENTS</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has <span id="xdx_906_eus-gaap--NumberOfReportableSegments_dc_uSegment_c20250101__20250331_zN6BR9kUfkTa" title="Number of reportable segments">two</span> reportable segments: DTC and OEM. The DTC segment pertains to Battle Born, LLC branded batteries which are sold directly to consumers. The OEM segment pertains to Dragonfly branded batteries which are sold to original equipment manufacturers</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance for all of its reportable segments based on both segment gross and net profit or loss from operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the DTC and OEM, the Chief Operating Decision Maker (“CODM”) uses both segment gross and net profit and loss from operations to allocate resources (including employees, property, and financial or capital resources) for each segment predominantly in the annual budget and forecasting process.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Assets information for the reported segments is not disclosed as it is not used by the CODM in evaluating the performance of, or making decisions about, the reported segments.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company’s reportable segments are strategic business units that offer different branded products. They are managed separately because each segment requires different technology and marketing strategies.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company’s CODM is the Chief Executive Officer.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font: small-caps 10pt Times New Roman, Times, Serif; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font: small-caps 10pt Times New Roman, Times, Serif; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font: small-caps 10pt Times New Roman, Times, Serif; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 14 - Reportable Segments (continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p id="xdx_898_eus-gaap--ScheduleOfSegmentReportingInformationBySegmentTextBlock_gL3SOSRIBSTB-HVUYAF_zFg8ccGlIIc5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table presents the reportable segments information for the three months ended March 31, 2025:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span id="xdx_8B7_zu1eyHRqWUc" style="display: none">SCHEDULE OF REPORTABLE SEGMENTS INFORMATION</span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20250101__20250331__us-gaap--StatementBusinessSegmentsAxis__custom--DirectToConsumersMember_zxTs7Y54oJyh" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">DTC</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49F_20250101__20250331__us-gaap--StatementBusinessSegmentsAxis__custom--OriginalEquipmentManufacturersMember_z4kJnuSPQyKl" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">OEM</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_492_20250101__20250331__us-gaap--StatementBusinessSegmentsAxis__custom--OtherMember_zqMVq3bQBj5h" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Other</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20250101__20250331_zx1AkqCqXNud" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td style="white-space: nowrap"> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_404_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_z5dhhH9attIi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 44%; font-weight: bold; text-align: left">Net Sales</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">5,016</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">8,090</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">250</td><td style="white-space: nowrap; width: 1%; text-align: left"><sup id="xdx_F42_zpegtCqg1hH3">(1)</sup></td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">13,356</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-style: italic; text-align: left">Reconciliation of Net Sales</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_400_ecustom--ReconciliationOfNetSalesReconcilingItems_pn3n3_zSloN5rqmGT8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Reconciling items</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1604">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--Revenues_pn3n3_zZ6GKT4jtXt2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Consolidated Net Sales</td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="white-space: nowrap; padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">13,356</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--CostDirectMaterial_pn3n3_zUhVHD7Rtfbe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Direct material</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,889</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,659</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1613">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,548</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--CostDirectLabor_pn3n3_zyjrVixAdZj7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Direct labor</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">321</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">484</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1618">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">805</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--CostOfGoodsAndServicesSoldOverhead_pn3n3_zcB7HMLqf4vh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Direct overhead and depreciation</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">429</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">646</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1623">-</span></td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,075</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--CostOfGoodsAndServicesSold_pn3n3_zd8WBCpNFdK9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.125in; font-weight: bold; text-align: left">Total Cost of Goods Sold</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,639</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,789</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1628">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,428</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--GrossProfit_pn3n3_zwbsLnAYZqYj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Gross profit</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,377</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,301</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">250</td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,928</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Operating Expenses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--ResearchAndDevelopmentExpense_pn3n3_z74Egt2TScy5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Research &amp; development</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1636">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1637">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,000</td><td style="white-space: nowrap; text-align: left"><sup id="xdx_F4C_znT58trWiuRc">(2)</sup></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--SalesTaxAdjustment_pn3n3_z6sloA082pEi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Sales tax adjustment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1642">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1643">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--TransactionFees_pn3n3_zBdOAt0v8UP1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Credit card &amp; amazon transaction fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">114</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1647">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1648">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">114</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--OtherGeneralAndAdministrativeExpense_pn3n3_zbCdeIXipCFc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Other general &amp; administrative</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1651">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1652">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,241</td><td style="white-space: nowrap; text-align: left"><sup id="xdx_F4F_zvfFoGYiDhnj">(3)</sup></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,241</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_ecustom--Shipping_pn3n3_zPZ3DMWOHLp8" style="vertical-align: bottom; background-color: White"> <td>Shipping</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">338</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">287</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1658">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">625</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--SalesAndMarketingStockCompensation_pn3n3_zUoWMlHpXNd2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Sales and marketing stock compensation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">38</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1663">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">48</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--SalesAndMarketingWages_pn3n3_zX2AGdDRby75" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Sales and marketing wages</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">197</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">311</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1668">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">508</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_ecustom--MarketingSpend_pn3n3_z7MgXnLcb26d" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Marketing spend</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">675</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">71</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">746</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_ecustom--Rent_pn3n3_zgPAmaiAns57" style="vertical-align: bottom; background-color: White"> <td>Rent</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">14</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1678">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">18</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_ecustom--UnallocatedSalesAndMarketingStockCompensation_pn3n3_zWV3l1x9QB31" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Unallocated sales and marketing stock compensation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1681">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1682">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">292</td><td style="white-space: nowrap; text-align: left"><sup id="xdx_F45_zpY8CCV5FTkg">(4)</sup></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">292</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_ecustom--UnallocatedSalesAndMarketingWages_pn3n3_zL0ppMVOf7a1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Unallocated sales and marketing wages</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1686">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1687">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">14</td><td style="white-space: nowrap; text-align: left"><sup id="xdx_F44_zczvF6z9IgXf">(4)</sup></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">14</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--OtherSellingAndMarketingExpense_pn3n3_z1Evv9hNBUYe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Other sales &amp; marketing</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1691">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1692">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">234</td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left"><sup id="xdx_F4F_zEaPV8L5GAsc">(4)</sup></td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">234</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--OperatingExpenses_pn3n3_zhGRP8C2r1W1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.125in; font-weight: bold; text-align: left">Total Operating Expenses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,350</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">711</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,781</td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,842</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--OperatingIncomeLoss_pn3n3_zYxrWCMa2eX5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.25in; text-align: left">Loss from operations</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">27</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,590</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(7,531</td><td style="white-space: nowrap; text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(5,914</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--InterestExpenseNonoperating_iN_pn3n3_di_zSjBOAKcTr1h" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Interest expense, net</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1706">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1707">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(4,701</td><td style="white-space: nowrap; text-align: left">)<sup id="xdx_F4B_zxfZfRgHgDJc">(5)</sup></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(4,701</td><td style="text-align: left">)</td></tr> <tr id="xdx_40D_eus-gaap--FairValueAdjustmentOfWarrants_iN_pn3n3_di_zcPOB5k8l5W1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Change in FMV of warrant liability</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1711">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1712">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,818</td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,818</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--NonoperatingIncomeExpense_pn3n3_z4EfMSLDxqeg" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 0.125in; font-weight: bold; text-align: left">Total Other Income (Expense)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1716">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1717">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(883</td><td style="white-space: nowrap; text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(883</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_pn3n3_zYlcIvz1u8I7" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Net Loss Before Taxes</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">27</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,590</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(8,414</td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(6,797</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--IncomeTaxExpenseBenefit_pn3n3_z6iUXelIkxWc" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Income Tax Benefit</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1726">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1727">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1728">-</span></td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1729">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--NetIncomeLoss_pn3n3_zBuAs2wi4bze" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Net Income (Loss)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">27</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">1,590</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(8,414</td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(6,797</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-style: italic; text-align: left">Reconciliation of net loss</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_ecustom--NetIncomeLossReconcilingItems_pn3n3_z2QkEQhxXQEb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Reconciling items</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1739">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_pn3n3_zM65aJGxiGo1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Consolidated net loss</td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="white-space: nowrap; padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(6,797</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table> <p style="text-align: center; margin-top: 0; margin-bottom: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font: small-caps 10pt Times New Roman, Times, Serif; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font: small-caps 10pt Times New Roman, Times, Serif; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font: small-caps 10pt Times New Roman, Times, Serif; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 14 - Reportable Segments (continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td id="xdx_F06_zaMeBy3Q0Jtc" style="width: 15pt; text-align: right">(1)</td><td style="width: 5pt"></td><td id="xdx_F1D_zSUuRUTREntk" style="text-align: justify">Licensing Revenue which is not considered a segment as it is currently immaterial.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td id="xdx_F0B_zU1aV5H669i2" style="width: 15pt; text-align: right">(2)</td><td style="width: 5pt"></td><td id="xdx_F1A_zrmPjzutqNMi" style="text-align: justify">Research and Development expenses including employee costs related to new products.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td id="xdx_F04_zMjxrM39zc28" style="width: 15pt; text-align: right">(3)</td><td style="width: 5pt"></td><td id="xdx_F1F_zXLCVtxu17da" style="text-align: justify">Administrative and Engineering employee costs along with legal, insurance, professional fees related to administration and other general office expenses.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td id="xdx_F05_ze3yPzaVhgrf" style="width: 15pt; text-align: right">(4)</td><td style="width: 5pt"></td><td id="xdx_F14_zjEmJeLZNCC7" style="text-align: justify">General sales and marketing employee cost and other marketing expenses.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td id="xdx_F05_zT1jUdSsQEWk" style="width: 15pt; text-align: right">(5)</td><td style="width: 5pt"></td><td id="xdx_F12_z9lCTIDod41h" style="text-align: justify">Interest expense related to debt and change in fair market value of warrant liability.</td> </tr></table> <p id="xdx_8AD_zn3yogRaJeGf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There were no significant customer revenues from the Company’s DTC segment for the three months ended March 31, 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Revenues from one customer of the Company’s OEM segment represents approximately $<span id="xdx_901_eus-gaap--Revenues_pn3n3_c20250101__20250331__us-gaap--StatementBusinessSegmentsAxis__custom--OriginalEquipmentManufacturersSegmentMember_zxPNm1Ep7zu3" title="Revenues">2,300</span>, or <span id="xdx_906_ecustom--PercentageOfRevenues_pid_dp_c20250101__20250331__us-gaap--StatementBusinessSegmentsAxis__custom--OriginalEquipmentManufacturersSegmentMember_zbYyTLAwFbS1" title="Percentage of revenues">18%</span>, of the Company’s consolidated revenues for the three months ended March 31, 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font: small-caps 10pt Times New Roman, Times, Serif; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font: small-caps 10pt Times New Roman, Times, Serif; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font: small-caps 10pt Times New Roman, Times, Serif; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 14 - Reportable Segments (continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b><span id="xdx_C08_gL3SOSRIBSTB-HVUYAF_ziWK0s42Qe34"> </span></b></span></p> <div id="xdx_C0E_gL3SOSRIBSTB-HVUYAF_zl60j6VlaBbk"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table presents the reportable segments information for the three months ended March 31, 2024:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" id="xdx_305_134_zi8ABgyZgwAh" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - SCHEDULE OF REPORTABLE SEGMENTS INFORMATION (Details)"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49C_20240101__20240331__us-gaap--StatementBusinessSegmentsAxis__custom--DirectToConsumersMember_zRY0anZ1a7zi" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">DTC</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49E_20240101__20240331__us-gaap--StatementBusinessSegmentsAxis__custom--OriginalEquipmentManufacturersMember_zvfvvFWWdE7h" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">OEM</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49E_20240101__20240331__us-gaap--StatementBusinessSegmentsAxis__custom--OtherMember_zs1NGY0gFnt3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Other</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_494_20240101__20240331_zmz4il3GD2If" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td style="white-space: nowrap"> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_404_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_z0gG0L8UiZgk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 44%; font-weight: bold; text-align: left">Net Sales</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">5,203</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">7,302</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1757">-</span></td><td style="white-space: nowrap; width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">12,505</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-style: italic; text-align: left">Reconciliation of Net Sales</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_400_ecustom--ReconciliationOfNetSalesReconcilingItems_pn3n3_z3Uo9Yj1Ynne" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Reconciling items</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1763">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--Revenues_pn3n3_zHzYtWQXMqm1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Consolidated Net Sales</td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="white-space: nowrap; padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">12,505</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--CostDirectMaterial_pn3n3_zYbn6dUqbhsa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Direct material</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,937</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,531</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1772">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,468</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--CostDirectLabor_pn3n3_z14PCirTQq16" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Direct labor</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">370</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">499</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1777">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">869</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--CostOfGoodsAndServicesSoldOverhead_pn3n3_zVIoZQC0Pzhc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Direct overhead and depreciation</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">476</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">641</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1782">-</span></td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,117</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--CostOfGoodsAndServicesSold_pn3n3_zHA1NeV3ibf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.125in; font-weight: bold; text-align: left">Total Cost of Goods Sold</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,783</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,671</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1787">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,454</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--GrossProfit_pn3n3_zwmwBlx3lmne" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Gross profit</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,420</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,631</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1792">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,051</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Operating Expenses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--ResearchAndDevelopmentExpense_pn3n3_z7sNjct4KTf4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Research &amp; development</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1795">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1796">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,333</td><td style="white-space: nowrap; text-align: left"><sup id="xdx_F42_z54Mn7vm5Jij">(1)</sup></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,333</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--SalesTaxAdjustment_pn3n3_z2pTOpoxBTmd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Sales tax adjustment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1801">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1802">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1</td><td style="text-align: left">)</td></tr> <tr id="xdx_40B_ecustom--TransactionFees_pn3n3_zVTqO13xvBW6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Credit card &amp; amazon transaction fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">147</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1806">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1807">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">147</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--OtherGeneralAndAdministrativeExpense_pn3n3_zQ7WQfLH0snb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Other general &amp; administrative</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1810">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1811">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,667</td><td style="white-space: nowrap; text-align: left"><sup id="xdx_F40_zIMahOJ8mqn4">(2)</sup></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,667</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_ecustom--Shipping_pn3n3_zk8AHfKdJDse" style="vertical-align: bottom; background-color: White"> <td>Shipping</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">295</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">280</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1817">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">575</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--SalesAndMarketingStockCompensation_pn3n3_zuXz4UCEM4mi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Sales and marketing stock compensation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">15</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">34</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1822">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">49</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--SalesAndMarketingWages_pn3n3_zsbaaWJFezk8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Sales and marketing wages</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">164</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">353</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1827">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">517</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_ecustom--MarketingSpend_pn3n3_zMFp5oxDngN3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Marketing spend</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">375</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">124</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1832">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">499</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_ecustom--Rent_pn3n3_zOD1Tsk5eBVk" style="vertical-align: bottom; background-color: White"> <td>Rent</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">14</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1837">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">17</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_ecustom--UnallocatedSalesAndMarketingStockCompensation_pn3n3_zbcQGHfgqtF3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Unallocated sales and marketing stock compensation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1840">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1841">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">254</td><td style="white-space: nowrap; text-align: left"><sup id="xdx_F4B_zqiow1JziFTj">(3)</sup></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">254</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_ecustom--UnallocatedSalesAndMarketingWages_pn3n3_zkSKnzfnlum9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Unallocated sales and marketing wages</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1845">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1846">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11</td><td style="white-space: nowrap; text-align: left"><sup id="xdx_F4B_z0b8N0Flrj1g">(3)</sup></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--OtherSellingAndMarketingExpense_pn3n3_zBAYNGgVV6j3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Other sales &amp; marketing</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1850">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1851">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">822</td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left"><sup id="xdx_F48_zHQuJvkO2vJk">(3)</sup></td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">822</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--OperatingExpenses_pn3n3_zLWEHTf6fDzh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.125in; font-weight: bold; text-align: left">Total Operating Expenses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,009</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">794</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,087</td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,890</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--OperatingIncomeLoss_pn3n3_z5pyn5HURlSa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.25in; font-weight: bold; text-align: left">Loss from Operations</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">411</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">837</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(7,087</td><td style="white-space: nowrap; text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(5,839</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--OtherNonoperatingIncomeExpense_pn3n3_zcCKhPYLcO71" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Other income (expense)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1865">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1866">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(4</td><td style="white-space: nowrap; text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(4</td><td style="text-align: left">)</td></tr> <tr id="xdx_406_eus-gaap--InterestExpenseNonoperating_iN_pn3n3_di_zMfknL4nWY4j" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Interest expense, net</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1870">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1871">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(4,760</td><td style="white-space: nowrap; text-align: left">)<sup id="xdx_F44_z5bwCgFBc7Sa">(4)</sup></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(4,760</td><td style="text-align: left">)</td></tr> <tr id="xdx_408_eus-gaap--FairValueAdjustmentOfWarrants_iN_pn3n3_di_zaGpdBi2LEc8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Change in FMV of warrant liability</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1875">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1876">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">236</td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left"><sup id="xdx_F41_zf0DJ22gUkij">(4)</sup></td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">236</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--NonoperatingIncomeExpense_pn3n3_zJl3EZZUwn26" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.125in; font-weight: bold; text-align: left">Total Other Income (Expense)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1880">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1881">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(4,528</td><td style="white-space: nowrap; text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(4,528</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_pn3n3_z79o2JAlAvu6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Net Loss before taxes</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">411</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">837</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(11,615</td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(10,367</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--IncomeTaxExpenseBenefit_pn3n3_zzmkM1wvCS5j" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Income Tax Benefit</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1890">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1891">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1892">-</span></td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1893">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--NetIncomeLoss_pn3n3_zIYNl4pLXft5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Net Income (Loss)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">411</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">837</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(11,615</td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(10,367</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-style: italic; text-align: left">Reconciliation of net loss</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_ecustom--NetIncomeLossReconcilingItems_pn3n3_zOeyLKhqyvte" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Reconciling items</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1903">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_pn3n3_zv9Gj2LhINyg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Consolidated net loss</td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="white-space: nowrap; padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(10,367</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table> <p style="margin-top: 0; margin-bottom: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font: small-caps 10pt Times New Roman, Times, Serif; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font: small-caps 10pt Times New Roman, Times, Serif; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font: small-caps 10pt Times New Roman, Times, Serif; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 14 - Reportable Segments (continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td id="xdx_F06_zwZdbhOPnybf" style="width: 15pt; text-align: right">(1)</td><td style="width: 5pt"></td><td id="xdx_F1E_zOzi3Z259UVl" style="text-align: justify">Research and Development expenses including employee costs related to new products.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td id="xdx_F0B_zrPQDRgo5AVc" style="width: 15pt; text-align: right">(2)</td><td style="width: 5pt"></td><td id="xdx_F1C_zvCYdhNf9pk7" style="text-align: justify">Administrative and Engineering employee costs along with legal, insurance, professional fees related to administration and other general office expenses.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td id="xdx_F01_zSDUrVMWJht7" style="width: 15pt; text-align: right">(3)</td><td style="width: 5pt"></td><td id="xdx_F1B_zK8FGo6m5Pgc" style="text-align: justify">General sales and marketing employee cost and other marketing expenses.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td id="xdx_F0F_zK7mjYEMwXWb" style="width: 15pt; text-align: right">(4)</td><td style="width: 5pt"></td><td id="xdx_F10_z67Ci3jP5Rg7" style="text-align: justify">Interest expense related to debt and change in fair market value of warrant liability.</td> </tr></table> </div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span id="xdx_C0E_gL3SOSRIBSTB-HVUYAF_zEjKg00788N1"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There were no significant customer revenues from the Company’s DTC segment for the three months ended March 31, 2024.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Revenues from one customer of the Company’s OEM segment represents approximately $<span id="xdx_908_eus-gaap--Revenues_pn3n3_c20240101__20240331__us-gaap--StatementBusinessSegmentsAxis__custom--OriginalEquipmentManufacturersSegmentMember_zhOgOHP6ysmj" title="Revenues">2,000</span>, or <span id="xdx_902_ecustom--PercentageOfRevenues_pid_dp_c20240101__20240331__us-gaap--StatementBusinessSegmentsAxis__custom--OriginalEquipmentManufacturersSegmentMember_ziB8bG40BBO6" title="Percentage of revenues">16%</span>, of the Company’s consolidated revenues for the three months ended March 31, 2024.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> 2 <p id="xdx_898_eus-gaap--ScheduleOfSegmentReportingInformationBySegmentTextBlock_gL3SOSRIBSTB-HVUYAF_zFg8ccGlIIc5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table presents the reportable segments information for the three months ended March 31, 2025:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span id="xdx_8B7_zu1eyHRqWUc" style="display: none">SCHEDULE OF REPORTABLE SEGMENTS INFORMATION</span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20250101__20250331__us-gaap--StatementBusinessSegmentsAxis__custom--DirectToConsumersMember_zxTs7Y54oJyh" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">DTC</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49F_20250101__20250331__us-gaap--StatementBusinessSegmentsAxis__custom--OriginalEquipmentManufacturersMember_z4kJnuSPQyKl" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">OEM</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_492_20250101__20250331__us-gaap--StatementBusinessSegmentsAxis__custom--OtherMember_zqMVq3bQBj5h" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Other</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20250101__20250331_zx1AkqCqXNud" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td style="white-space: nowrap"> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_404_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_z5dhhH9attIi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 44%; font-weight: bold; text-align: left">Net Sales</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">5,016</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">8,090</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">250</td><td style="white-space: nowrap; width: 1%; text-align: left"><sup id="xdx_F42_zpegtCqg1hH3">(1)</sup></td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">13,356</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-style: italic; text-align: left">Reconciliation of Net Sales</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_400_ecustom--ReconciliationOfNetSalesReconcilingItems_pn3n3_zSloN5rqmGT8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Reconciling items</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1604">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--Revenues_pn3n3_zZ6GKT4jtXt2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Consolidated Net Sales</td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="white-space: nowrap; padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">13,356</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--CostDirectMaterial_pn3n3_zUhVHD7Rtfbe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Direct material</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,889</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,659</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1613">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,548</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--CostDirectLabor_pn3n3_zyjrVixAdZj7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Direct labor</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">321</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">484</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1618">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">805</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--CostOfGoodsAndServicesSoldOverhead_pn3n3_zcB7HMLqf4vh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Direct overhead and depreciation</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">429</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">646</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1623">-</span></td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,075</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--CostOfGoodsAndServicesSold_pn3n3_zd8WBCpNFdK9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.125in; font-weight: bold; text-align: left">Total Cost of Goods Sold</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,639</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,789</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1628">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,428</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--GrossProfit_pn3n3_zwbsLnAYZqYj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Gross profit</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,377</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,301</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">250</td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,928</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Operating Expenses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--ResearchAndDevelopmentExpense_pn3n3_z74Egt2TScy5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Research &amp; development</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1636">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1637">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,000</td><td style="white-space: nowrap; text-align: left"><sup id="xdx_F4C_znT58trWiuRc">(2)</sup></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--SalesTaxAdjustment_pn3n3_z6sloA082pEi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Sales tax adjustment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1642">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1643">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--TransactionFees_pn3n3_zBdOAt0v8UP1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Credit card &amp; amazon transaction fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">114</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1647">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1648">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">114</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--OtherGeneralAndAdministrativeExpense_pn3n3_zbCdeIXipCFc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Other general &amp; administrative</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1651">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1652">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,241</td><td style="white-space: nowrap; text-align: left"><sup id="xdx_F4F_zvfFoGYiDhnj">(3)</sup></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,241</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_ecustom--Shipping_pn3n3_zPZ3DMWOHLp8" style="vertical-align: bottom; background-color: White"> <td>Shipping</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">338</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">287</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1658">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">625</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--SalesAndMarketingStockCompensation_pn3n3_zUoWMlHpXNd2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Sales and marketing stock compensation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">38</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1663">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">48</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--SalesAndMarketingWages_pn3n3_zX2AGdDRby75" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Sales and marketing wages</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">197</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">311</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1668">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">508</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_ecustom--MarketingSpend_pn3n3_z7MgXnLcb26d" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Marketing spend</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">675</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">71</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">746</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_ecustom--Rent_pn3n3_zgPAmaiAns57" style="vertical-align: bottom; background-color: White"> <td>Rent</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">14</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1678">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">18</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_ecustom--UnallocatedSalesAndMarketingStockCompensation_pn3n3_zWV3l1x9QB31" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Unallocated sales and marketing stock compensation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1681">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1682">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">292</td><td style="white-space: nowrap; text-align: left"><sup id="xdx_F45_zpY8CCV5FTkg">(4)</sup></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">292</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_ecustom--UnallocatedSalesAndMarketingWages_pn3n3_zL0ppMVOf7a1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Unallocated sales and marketing wages</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1686">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1687">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">14</td><td style="white-space: nowrap; text-align: left"><sup id="xdx_F44_zczvF6z9IgXf">(4)</sup></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">14</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--OtherSellingAndMarketingExpense_pn3n3_z1Evv9hNBUYe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Other sales &amp; marketing</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1691">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1692">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">234</td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left"><sup id="xdx_F4F_zEaPV8L5GAsc">(4)</sup></td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">234</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--OperatingExpenses_pn3n3_zhGRP8C2r1W1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.125in; font-weight: bold; text-align: left">Total Operating Expenses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,350</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">711</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,781</td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,842</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--OperatingIncomeLoss_pn3n3_zYxrWCMa2eX5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.25in; text-align: left">Loss from operations</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">27</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,590</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(7,531</td><td style="white-space: nowrap; text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(5,914</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--InterestExpenseNonoperating_iN_pn3n3_di_zSjBOAKcTr1h" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Interest expense, net</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1706">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1707">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(4,701</td><td style="white-space: nowrap; text-align: left">)<sup id="xdx_F4B_zxfZfRgHgDJc">(5)</sup></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(4,701</td><td style="text-align: left">)</td></tr> <tr id="xdx_40D_eus-gaap--FairValueAdjustmentOfWarrants_iN_pn3n3_di_zcPOB5k8l5W1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Change in FMV of warrant liability</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1711">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1712">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,818</td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,818</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--NonoperatingIncomeExpense_pn3n3_z4EfMSLDxqeg" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 0.125in; font-weight: bold; text-align: left">Total Other Income (Expense)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1716">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1717">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(883</td><td style="white-space: nowrap; text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(883</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_pn3n3_zYlcIvz1u8I7" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Net Loss Before Taxes</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">27</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,590</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(8,414</td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(6,797</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--IncomeTaxExpenseBenefit_pn3n3_z6iUXelIkxWc" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Income Tax Benefit</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1726">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1727">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1728">-</span></td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1729">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--NetIncomeLoss_pn3n3_zBuAs2wi4bze" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Net Income (Loss)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">27</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">1,590</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(8,414</td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(6,797</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-style: italic; text-align: left">Reconciliation of net loss</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_ecustom--NetIncomeLossReconcilingItems_pn3n3_z2QkEQhxXQEb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Reconciling items</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1739">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_pn3n3_zM65aJGxiGo1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Consolidated net loss</td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="white-space: nowrap; padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(6,797</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table> <p style="text-align: center; margin-top: 0; margin-bottom: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font: small-caps 10pt Times New Roman, Times, Serif; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font: small-caps 10pt Times New Roman, Times, Serif; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font: small-caps 10pt Times New Roman, Times, Serif; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 14 - Reportable Segments (continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td id="xdx_F06_zaMeBy3Q0Jtc" style="width: 15pt; text-align: right">(1)</td><td style="width: 5pt"></td><td id="xdx_F1D_zSUuRUTREntk" style="text-align: justify">Licensing Revenue which is not considered a segment as it is currently immaterial.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td id="xdx_F0B_zU1aV5H669i2" style="width: 15pt; text-align: right">(2)</td><td style="width: 5pt"></td><td id="xdx_F1A_zrmPjzutqNMi" style="text-align: justify">Research and Development expenses including employee costs related to new products.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td id="xdx_F04_zMjxrM39zc28" style="width: 15pt; text-align: right">(3)</td><td style="width: 5pt"></td><td id="xdx_F1F_zXLCVtxu17da" style="text-align: justify">Administrative and Engineering employee costs along with legal, insurance, professional fees related to administration and other general office expenses.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td id="xdx_F05_ze3yPzaVhgrf" style="width: 15pt; text-align: right">(4)</td><td style="width: 5pt"></td><td id="xdx_F14_zjEmJeLZNCC7" style="text-align: justify">General sales and marketing employee cost and other marketing expenses.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td id="xdx_F05_zT1jUdSsQEWk" style="width: 15pt; text-align: right">(5)</td><td style="width: 5pt"></td><td id="xdx_F12_z9lCTIDod41h" style="text-align: justify">Interest expense related to debt and change in fair market value of warrant liability.</td> </tr></table>  <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table presents the reportable segments information for the three months ended March 31, 2024:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" id="xdx_305_134_zi8ABgyZgwAh" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - SCHEDULE OF REPORTABLE SEGMENTS INFORMATION (Details)"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49C_20240101__20240331__us-gaap--StatementBusinessSegmentsAxis__custom--DirectToConsumersMember_zRY0anZ1a7zi" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">DTC</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49E_20240101__20240331__us-gaap--StatementBusinessSegmentsAxis__custom--OriginalEquipmentManufacturersMember_zvfvvFWWdE7h" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">OEM</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49E_20240101__20240331__us-gaap--StatementBusinessSegmentsAxis__custom--OtherMember_zs1NGY0gFnt3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Other</td><td style="white-space: nowrap; padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_494_20240101__20240331_zmz4il3GD2If" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td style="white-space: nowrap"> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_404_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn3n3_z0gG0L8UiZgk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 44%; font-weight: bold; text-align: left">Net Sales</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">5,203</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">7,302</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1757">-</span></td><td style="white-space: nowrap; width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">12,505</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-style: italic; text-align: left">Reconciliation of Net Sales</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_400_ecustom--ReconciliationOfNetSalesReconcilingItems_pn3n3_z3Uo9Yj1Ynne" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Reconciling items</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1763">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--Revenues_pn3n3_zHzYtWQXMqm1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Consolidated Net Sales</td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="white-space: nowrap; padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">12,505</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--CostDirectMaterial_pn3n3_zYbn6dUqbhsa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Direct material</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,937</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,531</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1772">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,468</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--CostDirectLabor_pn3n3_z14PCirTQq16" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Direct labor</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">370</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">499</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1777">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">869</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--CostOfGoodsAndServicesSoldOverhead_pn3n3_zVIoZQC0Pzhc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Direct overhead and depreciation</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">476</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">641</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1782">-</span></td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,117</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--CostOfGoodsAndServicesSold_pn3n3_zHA1NeV3ibf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.125in; font-weight: bold; text-align: left">Total Cost of Goods Sold</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,783</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,671</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1787">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,454</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--GrossProfit_pn3n3_zwmwBlx3lmne" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Gross profit</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,420</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,631</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1792">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,051</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Operating Expenses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--ResearchAndDevelopmentExpense_pn3n3_z7sNjct4KTf4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Research &amp; development</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1795">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1796">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,333</td><td style="white-space: nowrap; text-align: left"><sup id="xdx_F42_z54Mn7vm5Jij">(1)</sup></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,333</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--SalesTaxAdjustment_pn3n3_z2pTOpoxBTmd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Sales tax adjustment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1801">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1802">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1</td><td style="text-align: left">)</td></tr> <tr id="xdx_40B_ecustom--TransactionFees_pn3n3_zVTqO13xvBW6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Credit card &amp; amazon transaction fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">147</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1806">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1807">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">147</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--OtherGeneralAndAdministrativeExpense_pn3n3_zQ7WQfLH0snb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Other general &amp; administrative</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1810">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1811">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,667</td><td style="white-space: nowrap; text-align: left"><sup id="xdx_F40_zIMahOJ8mqn4">(2)</sup></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,667</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_ecustom--Shipping_pn3n3_zk8AHfKdJDse" style="vertical-align: bottom; background-color: White"> <td>Shipping</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">295</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">280</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1817">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">575</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--SalesAndMarketingStockCompensation_pn3n3_zuXz4UCEM4mi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Sales and marketing stock compensation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">15</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">34</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1822">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">49</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--SalesAndMarketingWages_pn3n3_zsbaaWJFezk8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Sales and marketing wages</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">164</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">353</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1827">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">517</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_ecustom--MarketingSpend_pn3n3_zMFp5oxDngN3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Marketing spend</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">375</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">124</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1832">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">499</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_ecustom--Rent_pn3n3_zOD1Tsk5eBVk" style="vertical-align: bottom; background-color: White"> <td>Rent</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">14</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1837">-</span></td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">17</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_ecustom--UnallocatedSalesAndMarketingStockCompensation_pn3n3_zbcQGHfgqtF3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Unallocated sales and marketing stock compensation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1840">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1841">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">254</td><td style="white-space: nowrap; text-align: left"><sup id="xdx_F4B_zqiow1JziFTj">(3)</sup></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">254</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_ecustom--UnallocatedSalesAndMarketingWages_pn3n3_zkSKnzfnlum9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Unallocated sales and marketing wages</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1845">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1846">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11</td><td style="white-space: nowrap; text-align: left"><sup id="xdx_F4B_z0b8N0Flrj1g">(3)</sup></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--OtherSellingAndMarketingExpense_pn3n3_zBAYNGgVV6j3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Other sales &amp; marketing</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1850">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1851">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">822</td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left"><sup id="xdx_F48_zHQuJvkO2vJk">(3)</sup></td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">822</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--OperatingExpenses_pn3n3_zLWEHTf6fDzh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.125in; font-weight: bold; text-align: left">Total Operating Expenses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,009</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">794</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,087</td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,890</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--OperatingIncomeLoss_pn3n3_z5pyn5HURlSa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.25in; font-weight: bold; text-align: left">Loss from Operations</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">411</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">837</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(7,087</td><td style="white-space: nowrap; text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(5,839</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--OtherNonoperatingIncomeExpense_pn3n3_zcCKhPYLcO71" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Other income (expense)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1865">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1866">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(4</td><td style="white-space: nowrap; text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(4</td><td style="text-align: left">)</td></tr> <tr id="xdx_406_eus-gaap--InterestExpenseNonoperating_iN_pn3n3_di_zMfknL4nWY4j" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Interest expense, net</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1870">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1871">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(4,760</td><td style="white-space: nowrap; text-align: left">)<sup id="xdx_F44_z5bwCgFBc7Sa">(4)</sup></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(4,760</td><td style="text-align: left">)</td></tr> <tr id="xdx_408_eus-gaap--FairValueAdjustmentOfWarrants_iN_pn3n3_di_zaGpdBi2LEc8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Change in FMV of warrant liability</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1875">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1876">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">236</td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left"><sup id="xdx_F41_zf0DJ22gUkij">(4)</sup></td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">236</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--NonoperatingIncomeExpense_pn3n3_zJl3EZZUwn26" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.125in; font-weight: bold; text-align: left">Total Other Income (Expense)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1880">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1881">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(4,528</td><td style="white-space: nowrap; text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(4,528</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_pn3n3_z79o2JAlAvu6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Net Loss before taxes</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">411</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">837</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(11,615</td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(10,367</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--IncomeTaxExpenseBenefit_pn3n3_zzmkM1wvCS5j" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Income Tax Benefit</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1890">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1891">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1892">-</span></td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1893">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--NetIncomeLoss_pn3n3_zIYNl4pLXft5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Net Income (Loss)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">411</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">837</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(11,615</td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(10,367</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-style: italic; text-align: left">Reconciliation of net loss</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="white-space: nowrap; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_ecustom--NetIncomeLossReconcilingItems_pn3n3_zOeyLKhqyvte" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Reconciling items</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="white-space: nowrap; padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1903">-</span></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_pn3n3_zv9Gj2LhINyg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Consolidated net loss</td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="white-space: nowrap; padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(10,367</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table> <p style="margin-top: 0; margin-bottom: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font: small-caps 10pt Times New Roman, Times, Serif; text-transform: uppercase"><b>Dragonfly Energy Holdings Corp.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font: small-caps 10pt Times New Roman, Times, Serif; text-transform: uppercase"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font: small-caps 10pt Times New Roman, Times, Serif; text-transform: uppercase"><b>(in thousands, except share and per share data)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 14 - Reportable Segments (continued)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td id="xdx_F06_zwZdbhOPnybf" style="width: 15pt; text-align: right">(1)</td><td style="width: 5pt"></td><td id="xdx_F1E_zOzi3Z259UVl" style="text-align: justify">Research and Development expenses including employee costs related to new products.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td id="xdx_F0B_zrPQDRgo5AVc" style="width: 15pt; text-align: right">(2)</td><td style="width: 5pt"></td><td id="xdx_F1C_zvCYdhNf9pk7" style="text-align: justify">Administrative and Engineering employee costs along with legal, insurance, professional fees related to administration and other general office expenses.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td id="xdx_F01_zSDUrVMWJht7" style="width: 15pt; text-align: right">(3)</td><td style="width: 5pt"></td><td id="xdx_F1B_zK8FGo6m5Pgc" style="text-align: justify">General sales and marketing employee cost and other marketing expenses.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td id="xdx_F0F_zK7mjYEMwXWb" style="width: 15pt; text-align: right">(4)</td><td style="width: 5pt"></td><td id="xdx_F10_z67Ci3jP5Rg7" style="text-align: justify">Interest expense related to debt and change in fair market value of warrant liability.</td> </tr></table>   5016000 8090000 250000 13356000 13356000 2889000 4659000 7548000 321000 484000 805000 429000 646000 1075000 3639000 5789000 9428000 1377000 2301000 250000 3928000 1000000 1000000 2000 2000 114000 114000 6241000 6241000 338000 287000 625000 10000 38000 48000 197000 311000 508000 675000 71000 746000 14000 4000 18000 292000 292000 14000 14000 234000 234000 1350000 711000 7781000 9842000 27000 1590000 -7531000 -5914000 4701000 4701000 -3818000 -3818000 -883000 -883000 27000 1590000 -8414000 -6797000 27000 1590000 -8414000 -6797000 -6797000 2300000 0.18 5203000 7302000 12505000 12505000 2937000 4531000 7468000 370000 499000 869000 476000 641000 1117000 3783000 5671000 9454000 1420000 1631000 3051000 1333000 1333000 -1000 -1000 147000 147000 4667000 4667000 295000 280000 575000 15000 34000 49000 164000 353000 517000 375000 124000 499000 14000 3000 17000 254000 254000 11000 11000 822000 822000 1009000 794000 7087000 8890000 411000 837000 -7087000 -5839000 -4000 -4000 4760000 4760000 -236000 -236000 -4528000 -4528000 411000 837000 -11615000 -10367000 411000 837000 -11615000 -10367000 -10367000 2000000 0.16 <p id="xdx_804_eus-gaap--SubsequentEventsTextBlock_zSmp52EV3fAl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b>Note 15 - <span id="xdx_82B_z9Qx0E7ACtU8">SUBSEQUENT EVENTS</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-variant: small-caps; text-transform: uppercase"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">On April 28, 2025, pursuant to the Purchase Agreement, the Company sold to the Purchaser, in the Second Closing, an additional <span id="xdx_901_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20250428__20250428__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_z3yd7YWTVyli" title="Number of shares issued">450</span> shares of Series A Preferred Stock at a price of $<span id="xdx_90B_eus-gaap--SaleOfStockPricePerShare_iI_pid_c20250428__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_ze4Wk6BMIVsh" title="Share price">10,000</span> per share, which shares of Series A Preferred Stock are initially convertible into shares of common stock at a conversion price of $<span id="xdx_90D_eus-gaap--PreferredStockConvertibleConversionPrice_iI_pid_c20250428__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zWOMW54cSfA7" title="Common stock, conversion price">0.594</span> per share. The Floor Price (as defined in the Certificate of Designation) for the shares of Series A Preferred Stock issued in the Second Closing is $<span id="xdx_90D_eus-gaap--DerivativeFloorPrice_iI_pid_uUSDPShares_c20250428__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zE30BffWfc41" title="Floor price">0.10902</span>. The gross proceeds of the Second Closing were $<span id="xdx_90A_eus-gaap--StockIssuedDuringPeriodValueNewIssues_pn5n6_c20250428__20250428__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zQktGZscLGvi" title="Gross proceeds">4.5</span> million, with net proceeds of $<span id="xdx_90A_eus-gaap--ProceedsFromIssuanceOrSaleOfEquity_pn4n6_c20250428__20250428__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zJDtcNQjXkMf" title="Net proceeds">4.15</span> million (net of expenses).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Subsequent to March 31, 2025, <span id="xdx_903_eus-gaap--ConversionOfStockSharesConverted1_pid_c20250401__20250515__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zKJTwOGN2uzh" title="Shares converted">105</span> shares of Series A Preferred Stock were converted into <span id="xdx_903_eus-gaap--ConversionOfStockSharesConverted1_pid_c20250401__20250515__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zyGqr0gEOIhe" title="Shares converted">1,933,420</span> shares of common stock.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On May 14, 2025, the Company received a letter (the “Letter”) from the Listing Qualifications Staff (the “Staff”) of Nasdaq indicating that, based upon the Company’s non-compliance with the $<span id="xdx_90C_eus-gaap--SharePrice_iI_c20250514__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__srt--RangeAxis__srt--MinimumMember_za20nL66Mykj" title="Shares price">1.00</span> minimum bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2) for continued listing on The Nasdaq Capital Market (the “Bid Price Requirement”), the Staff had determined to delist the Company’s securities from Nasdaq unless it timely requests a hearing before the Nasdaq Hearings Panel (the “Panel”). The Nasdaq Listing Rules require listed securities to maintain a minimum bid price of $<span id="xdx_90C_eus-gaap--SharePrice_iI_c20250514__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__srt--RangeAxis__srt--MinimumMember_zjlZV3aCe9Hh" title="Shares price">1.00</span> per share and, based upon the closing bid price of the Company’s common stock for the last 30 consecutive business days, the Company no longer meets this requirement. Pursuant to Listing Rule 5810(c)(3)(A)(iv), the Company is not eligible for any compliance period due to the fact that it has effected a reverse stock split over the prior one-year period. As previously disclosed, pursuant to the written notice received from the Staff on December 12, 2024 (the “Notice”), the Company is also currently not in compliance with Nasdaq Listing Rule 5550(b)(2), which requires the Company to maintain a minimum Value of Listed Securities (“MVLS”) of $<span id="xdx_908_eus-gaap--MarketableSecurities_iI_pn6n6_c20250514__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__srt--RangeAxis__srt--MinimumMember_z25mJvwlugld" title="Marketable securities">35</span> million for continued listing on The Nasdaq Capital Market (the “MVLS Requirement”). In accordance with Nasdaq Listing Rule 5810(c)(3)(C), the Company has until June 10, 2025, to regain compliance with the MVLS Requirement, subject to extension by Nasdaq. The Company fully intends to timely request a hearing before the Panel, at which hearing the Company will request an extension within which to evidence compliance with the Bid Price Requirement and the MVLS Requirement. The Company’s request for a hearing will stay any suspension or delisting action by the Staff pending the hearing and the expiration of any extension period granted by the Panel following the hearing. The Company intends to continue to take definitive steps in an effort to evidence compliance with the Bid Price Requirement and the MVLS Requirement.</span></p> 450 10000 0.594 0.10902 4500000 4150000 105 1933420 1.00 1.00 35000000 false false false false Changes in fair value of warrant liabilities are disclosed separately in the Condensed Consolidated Statements of Operations. Represents scheduled payments for the remaining nine-month period ending December 31, 2025. Represents scheduled payments for the remaining nine-month period ending December 31, 2025. Licensing Revenue which is not considered a segment as it is currently immaterial. Research and Development expenses including employee costs related to new products. Administrative and Engineering employee costs along with legal, insurance, professional fees related to administration and other general office expenses. General sales and marketing employee cost and other marketing expenses. Interest expense related to debt and change in fair market value of warrant liability. Research and Development expenses including employee costs related to new products. Administrative and Engineering employee costs along with legal, insurance, professional fees related to administration and other general office expenses. General sales and marketing employee cost and other marketing expenses. Interest expense related to debt and change in fair market value of warrant liability.