Amortization of right of use assets 1,585 898
Loss on disposal of property and
equipment - 116
Changes in Assets and Liabilities
Accounts receivable (2,128) (3,039)
Inventories 14,765 7,939
Prepaid expenses 38 801
Prepaid inventory (365) (72)
Other current assets (635) 149
Other assets (445) -
Income taxes payable 174 (4)
Accounts payable and accrued expenses (1,657) 343
Accrued tariffs 168 300
Deferred revenue 4,833 -
Customer deposits (12) (21)
------- -------
Total Adjustments 26,061 404
------- -------
Net Cash Used in Operating Activities (4,712) (16,727)
------- -------
Cash Flows From Investing Activities
Purchase of property and equipment (1,691) (6,507)
------- -------
Net Cash Used in Investing Activities (1,691) (6,507)
------- -------
(Continued)
Cash Flows From Financing Activities
Proceeds from public offering 21,640
Proceeds from public offering $(ATM.UK)$, net 1,705 671
Proceeds from note payable, related
party 2,700 1,000
Repayment of note payable, related party (2,700) (1,000)
Repayment of note payable (5,275)
Proceeds from exercise of public
warrants - 747
Proceeds from exercise of options 4 359
Proceeds from exercise of Investor
Warrants 546
--------- -------
Net Cash Provided by Financing
Activities 1,709 18,688
------- -------
Net Decrease in Cash and cash equivalents (4,694) (4,546)
Cash and cash equivalents - beginning of
period 12,713 17,781
------- -------
Cash and cash equivalents - end of period $ 8,019 $ 13,235
======= =======
Supplemental Disclosures of Cash Flow
Information:
Cash paid for income taxes - 237
Cash paid for interest $ 4,782 $ 4,361
======= =======
Supplemental Non-Cash Items
Purchases of property and equipment, not
yet paid $ 2,460 $ 53
======= =======
Recognition of right of use asset
obtained in exchange for operating
lease liability $ 18,653 $ -
======= =======
Recognition of leasehold improvements
obtained in exchange for operating
lease liability $ 4,683 $ -
======= =======
Recognition of warrant liability $ 6,381 $ 13,762
======= =======
Settlement of accrued liability for
employee liability for employee stock
purchase plan $ 112 $ -
======= =======
Non-cash impact of cash exercise of
liability classified warrants $ - $ 617
======= =======
Cashless exercise of liability
classified warrants $ - $ 12,629
======= =======
Use of Non-GAAP Financial Measures
The Company provides non-GAAP financial measures including EBITDA and Adjusted EBITDA as a supplement to GAAP financial information to enhance the overall understanding of the Company's financial performance and to assist investors in evaluating the Company's results of operations, period over period. Adjusted non-GAAP measures exclude significant unusual items. Investors should consider these non-GAAP measures as a supplement to, and not a substitute for financial information prepared on a GAAP basis.
Adjusted EBITDA
Adjusted EBITDA is considered a non-GAAP financial measure under the rules of the SEC because it excludes certain amounts included in net loss calculated in accordance with GAAP. Specifically, the Company calculates Adjusted EBITDA by EBITDA adjusted to exclude stock-based compensation expense and changes in fair market value of warrant liabilities.
The Company has included Adjusted EBITDA because it is a key measure used by Dragonfly's management team to evaluate its operating performance, generate future operating plans, and make strategic decisions, including those relating to operating expenses. As such, the Company believes Adjusted EBITDA is helpful in highlighting trends in the ongoing core operating results of the business.
Adjusted EBITDA has limitations as an analytical tool, and it should not be considered in isolation or as a substitute for analysis of net loss or other results as reported under GAAP. Some of these limitations are:
-- Adjusted EBITDA does not reflect the Company's cash expenditures, future
requirements for capital expenditures, or contractual commitments;
-- Adjusted EBITDA does not reflect changes in, or cash requirements for,
the Company's working capital needs;
-- Adjusted EBITDA does not reflect the Company's tax expense or the cash
requirements to pay taxes;
-- although amortization and depreciation are non-cash charges, the assets
being amortized and depreciated will often have to be replaced in the
future and Adjusted EBITDA does not reflect any cash requirements for
such replacements;
-- Adjusted EBITDA should not be construed as an inference that the
Company's future results will be unaffected by unusual or non-recurring
items for which the Company may adjust in historical periods; and
-- other companies in the industry may calculate Adjusted EBITDA differently
than the Company does, limiting its usefulness as a comparative measure.
Reconciliations of Non-GAAP Financial Measures
EBITDA and Adjusted EBITDA
The following table presents reconciliations of EBITDA and Adjusted EBITDA to the most directly comparable GAAP financial measure for each of the periods indicated.
Dragonfly Energy Holdings Corp.
For the Three Months Ended September 30
(in thousands, except share and per share data)
2024 2023
Net Loss Before Taxes $(6,779) $(10,007)
Interest Expense 5,615 3,987
Depreciation and Amortization 327 316
------ -------
EBITDA $ (837) $ (5,704)
Adjusted for EBITDA
Stock Based Compensation 256 946
Change in fair market value of warrant
liability (4,875) 145
------ -------
Adjusted EBITDA $(5,456) $ (4,613)
Source: Dragonfly Energy Holdings Corp.
(END) Dow Jones Newswires
November 14, 2024 16:15 ET (21:15 GMT)