Dragonfly Energy Holdings Corp

Good afternoon, and welcome to Dragonfly Energy's first quarter 2025 earnings call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. I'll now turn the call over to Simon Terebiatsky, Investor Relations. Please go ahead.

Thank you, Operator. Appreciate you joining us for today's call. Joining me here are Dr. Dennis Ferris, Dragonfly Energy's Chairman, President, and Chief Executive Officer, and Wade Seberg, Chief Commercial Officer. Before I turn the call over to Dennis, I'd like to make a brief statement regarding forward-looking remarks. During this call, the company will be making forward-looking remarks within the meaning of the United States Private Securities Litigation Reform Act of 1995 based on current expectations. These forward-looking statements are subject to risks and guarantees and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Actual results may differ due to factors noted in the press release and in periodic SEC filings. Management will reference some non-GAAP financial measures. Reconciliation to the nearest corresponding GAAP measures can be found in today's release on the company's website. Please note that all comparisons that will be discussed today are on a year-over-year basis unless otherwise noted. I'll turn the call over to Dennis.

Thank you, Simon, and thank you everyone for joining us today. We were pleased to report revenue growth of 6.8% in the first quarter, exceeding our guidance and representing our second consecutive quarter of year over year revenue growth. While the RV market continues to navigate headwinds, adoption trends within our product portfolio remain healthy. This is evidenced by the 10.8% growth in net sales from OEM customers. driven by broader integration of our solutions at the factory level across more models within existing partnerships. Partially offsetting OEM growth was a slight decline in net sales from DTC customers, as the segment continues to be impacted by macroeconomic pressures. While we remain committed to serving our valued DTC customers, we expect long-term growth to be led by our OEM channel as we expand our strategic partnerships and accelerate our product development and rollout efforts. As we discussed in the prior quarter, we successfully launched our corporate optimization program to more precisely focus the organization and its priorities on near-term revenue generating opportunities, accelerating our path to growth and profitability. This strategic initiative is already delivering tangible operational improvements, strengthening our ability to execute across key target markets. As part of this initiative, we reallocated resources to prioritize product development with near-term revenue potential. A strong early example of this strategy is the accelerated launch of our Battle Born dual flow power pack for the heavy duty trucking market, a practical hybrid electrification solution. In today's uncertain market, we believe many fleets are looking to adopt partial electrification strategies that balance short-term cost control with long-term sustainability and performance goals. As Wade will discuss shortly, the dual flow solution is already gaining traction among fleets navigating these operational challenges. The optimization program has also enabled us to implement several targeted enhancements across our manufacturing operations, resulting in increased production capacity without the need for any additional headcount. Under the leadership of Dr. Vik Singh, our chief operating officer, we have increased the use of automation on our product lines, standardized user interfaces, and implemented new accountability frameworks. Along with recent consolidation into our new 400,000 square foot facility, these operational enhancements are strengthening our ability to serve and grow our diverse customer base, while maintaining our focus on cost, discipline, and organizational efficiency. Ultimately, we believe our corporate optimization initiative, combined with our stronger financial position following our recent debt restructuring and capital raise, provides the foundation for continued revenue growth as we drive towards profitability. Turning to the broader market environment, I'd like to highlight Dragonfly Energy's unique strategic position amid today's volatile tariff landscape. First and foremost, our growing U.S.-based production capabilities provide a significant competitive advantage over companies relying on overseas production. We have been investing in domestic battery production since 2012, well before onshoring became a national priority. While we continue to source certain components such as battery cells from overseas suppliers, we complete all final assembly at our Nevada-based facility, an approach that not only strengthens quality control, but also reflects our longstanding commitment to U.S. manufacturing. We view this strategy as an interim step on our path to becoming a complete domestic producer, including production of our own lithium iron phosphate cells. We believe our domestic operations allow us to add substantial value through design, assembly, testing, and integration, resulting in greater flexibility, improved quality assurance, and key cost advantages. With a larger portion of our cost structure tied to US labor and overhead rather than imported finished goods, we are better positioned to absorb tariff-related impacts. In addition, our vertically integrated approach lays the groundwork for further domestic expansion. We've accelerated efforts to transition select components to North American-based sourcing where feasible, and we remain committed to expanding our domestic footprint as market conditions and regulatory factors evolve. In addition, Dragonfly Energy holds a lithium supply agreement with Ioneer, positioning us ahead of the curve as the U.S. works to localize critical mineral supply chains. Located in Nevada, Ioneer's rhyolite-rich lithium boron project offers both logistical and strategic advantages with lithium development recognized as a priority industry by state leadership we believe this agreement supports our long-term vision of building a more sustainable and resilient us-based battery ecosystem as we continue working toward full vertical integration of our battery manufacturing within the state in direct response to tariff developments we've taken proactive steps to help mitigate potential impacts First, we've leveraged our position as a long-term strategic customer to secure favorable terms with key foreign suppliers, helping to offset potential cost increases. And second, we're working closely with our customers to manage pricing adjustments and ensure minimal disruption to their operations. We continue to evaluate additional strategies to enhance our flexibility and efficiency as the trade environment evolves. Looking ahead, we believe our domestic manufacturing foundation, combined with our strategic diversification into adjacent markets, positions Dragonfly Energy to navigate this volatile environment while continuing to deliver high quality energy storage solutions to a diverse and growing customer base. Now I would like to pass the call to Wade, who will discuss trends we are seeing in the heavy duty trucking industry.