Note 1 - NATURE OF BUSINESS

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 Battle Born Batteries. In addition, the Company develops technology for improved lithium ion battery manufacturing and assembly methods.

On October 8, 2026, the Company’s Board of Directors (the “Board”) approved a 1-for-8 reverse stock split of the Company’s authorized and issued and outstanding common stock. In connection with the reverse stock split, the Company’s authorized shares of common stock were reduced from 400,000,000 shares to 50,000,000 shares, and the par value of common stock remained unchanged at $0.0001 per share. The reverse stock split proportionately adjusted outstanding equity awards, shares reserved under equity incentive plans and related agreements, convertible preferred stock conversion factors, and outstanding warrants, including related exercise, grant, acquisition and conversion terms, as applicable. The Company’s authorized preferred stock was not impacted. The reverse stock split was effected upon market open on October 12, 2026, and shares of common stock began trading on a split-adjusted basis as of market open on October 12, 2026.

Unless otherwise indicated, all share and per-share amounts presented in the unaudited condensed consolidated financial statements and related notes have been retroactively adjusted to reflect the Company’s reverse stock splits, including the 1-for-10 reverse stock split effective December 18, 2025 and the 1-for-8 reverse stock split effective October 12, 2026.