Dragonfly Energy Holdings Corp. (NASDAQ:DFLI) Q2 2023 Results Conference Call August 21, 2023 5:00 PM ET

Company Participants

Denis Phares - CEO

John Marchetti - CFO

Conference Call Participants

Vincent Anderson - Stifel

George Gianarikas - Canaccord

Brian Dobson - Chardan

Operator

Good afternoon. My name is J.P. and I'll be your operator today for Dragonfly Energy's Second Quarter Earnings Call. This call can be accessed along with the earnings press release and SEC filings on the Investor section of the Dragonfly Energy website found at www.dragonflyenergy.com. As a reminder, this conference call is being webcast and recorded. [Operator Instructions]

During this call, the company will be making forward-looking statements based on current expectations. Actual results may differ due to factors noted in the press release and in the periodic SEC filings. Management will reference some non-GAAP financial measures. The consolidations to the nearest corresponding GAAP measure can be found in today's release on the company's website.

I'll now turn the call over to Dr. Denis Phares, Chief Executive Officer of Dragonfly.

Denis Phares

Thank you, and thank you to everyone joining us today. For those who are new to our story, Dragonfly Energy was founded in 2012 and today is a comprehensive lithium-ion battery technology company. We have operations that span the development of proprietary and patented battery cell manufacturing processes, the design and assembly of battery packs as well as the integration of these packs and other ancillary components into full energy storage systems. We market and sell these systems into a wide range of consumer and industrial market's end uses, including the recreational vehicle, marine and off-grid solar sectors.

Traditionally, these markets have relied on lead acid batteries for energy storage. However, lead is toxic, and remains a widespread problem in our environment. Dragonfly's lithium-ion battery technology provides customers with a safer, cleaner and better performing storage solution that also provides 2 to 3x more power, lasts over 10x longer, is 1/5 the weight, charges faster, and requires no maintenance. We are proud of our patent portfolio, innovations, and growth to date. We are achieving growth within our core markets, while continuing to expand our reach into new market adjacencies.

The headwinds continue to face in our core markets, which are dominated by consumer discretionary spending are well documented and remain challenging. The RV industry, in particular, has experienced more severe unit declines than previously expected, with deliveries expected to fall to volumes not seen in a decade. As a result of this industry weakness, our largest RV customer has instituted a de-contenting strategy that ultimately changed our premium energy storage offering from a standard install to a dealer option.