Dragonfly Energy (DFLI) 10-Q 15 May 23 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2023	May 10, 2023
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2023
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity File Number	001-40730
Entity Registrant Name	DRAGONFLY ENERGY HOLDINGS CORP.
Entity Central Index Key	0001847986
Entity Tax Identification Number	85-1873463
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	1190 Trademark Drive
Entity Address, Address Line Two	#108
Entity Address, City or Town	Reno
Entity Address, State or Province	NV
Entity Address, Postal Zip Code	89521
City Area Code	(775)
Local Phone Number	622-3448
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		45,885,513
Common stock, par value $0.0001 per share
Title of 12(b) Security	Common stock, par value $0.0001 per share
Trading Symbol	DFLI
Security Exchange Name	NASDAQ
Redeemable Warrants, exercisable for common stock at an exercise price of $11.50 per share, subject to adjustment
Title of 12(b) Security	Redeemable Warrants, exercisable for common stock at an exercise price of $11.50 per share, subject to adjustment
Trading Symbol	DFLIW
Security Exchange Name	NASDAQ

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current Assets
Cash	$ 15,791	$ 17,781
Accounts receivable, net of allowance for doubtful accounts	2,969	1,444
Inventory	51,812	49,846
Prepaid expenses	1,820	1,624
Prepaid inventory	1,703	2,002
Prepaid income tax	525	525
Other current assets	396	267
Total Current Assets	75,016	73,489
Property and Equipment
Machinery and equipment	11,147	10,214
Office furniture and equipment	275	275
Leasehold improvements	1,717	1,709
Vehicle	33	195
Total	13,172	12,393
Less accumulated depreciation and amortization	(1,884)	(1,633)
Property and Equipment, Net	11,288	10,760
Operating lease right of use asset	4,205	4,513
Total Assets	90,509	88,762
Current Liabilities
Accounts payable	18,824	13,475
Accrued payroll and other liabilities	8,199	6,295
Customer deposits	418	238
Uncertain tax position liability	128	128
Operating lease liability, current portion	1,215	1,188
Total Current Liabilities	50,483	40,566
Long-Term Liabilities
Warrant liabilities	4,141	32,831
Accrued expenses-long term	361	492
Operating lease liability, net of current portion	3,209	3,541
Total Long-Term Liabilities	7,711	36,864
Total Liabilities	58,194	77,430
Commitments and Contingencies (See Note 5)
Equity
Common stock, 170,000,000 shares at $0.0001 par value, authorized, 45,795,502 and 43,272,728 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively	5	4
Preferred stock, 5,000,000 shares at $0.0001 par value, authorized, no shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively
Additional paid in capital	54,551	38,461
Retained deficit	(22,241)	(27,133)
Total Equity	32,315	11,332
Total Liabilities and Shareholders’ Equity	90,509	88,762
Nonrelated Party [Member]
Current Liabilities
Notes payable, related party	20,699	19,242
Related Party [Member]
Current Liabilities
Notes payable, related party	$ 1,000

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Common stock, shares authorized	170,000,000	170,000,000
Common shares, par value	$ 0.0001	$ 0.0001
Common stock, shares outstanding	45,795,502	43,272,728
Common stock, shares issued	45,795,502	43,272,728
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares outstanding	0	0
Preferred stock, shares issued	0	0

Condensed Interim Consolidated

Condensed Interim Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Net Sales	$ 18,791	$ 18,303
Cost of Goods Sold	14,048	12,808
Gross Profit	4,743	5,495
Operating Expenses
Research and development	880	339
General and administrative	9,495	3,626
Selling and marketing	4,184	3,092
Total Operating Expenses	14,559	7,057
Loss From Operations	(9,816)	(1,562)
Other Income (Expense)
Interest expense	(3,815)	(1,263)
Change in fair market value of warrant liability	18,523
Total Other Income (Expense)	14,708	(1,263)
Income (Loss) Before Taxes	4,892	(2,825)
Income Tax (Benefit) Expense		(527)
Net Income (Loss)	$ 4,892	$ (2,298)
Income (Loss) Per Share- Basic	$ 0.11	$ (0.06)
Income (Loss) Per Share- Diluted	$ 0.10	$ (0.06)
Weighted Average Number of Shares- Basic	45,104,515	36,542,944
Weighted Average Number of Shares- Diluted	48,455,996	36,542,944

Condensed Consolidated Statemen

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Redeemable Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2021	$ 2,000	$ 4	$ 1,619	$ 12,438	$ 14,061
Balance, shares at Dec. 31, 2021	10,000,000	20,875,475
Retroactive application of recapitalization	$ (2,000)		2,000		2,000
Retroactive application of recapitalization, shares	(10,000,000)	15,621,523
Adjusted balance, beginning of period		$ 4	3,619	12,438	16,061
Adjusted balance, beginning of period, shares		36,496,998
Net income (loss)				(2,298)	(2,298)
Stock compensation expense			288		288
Exercise of stock options			113		$ 113
Exercise of stock options, shares		100,374			48,369	[1]
Balance at Mar. 31, 2022		$ 4	4,020	10,140	$ 14,164
Balance, shares at Mar. 31, 2022		36,597,372
Balance at Dec. 31, 2022		$ 4	38,461	(27,133)	11,332
Balance, shares at Dec. 31, 2022		43,272,728
Net income (loss)				4,892	4,892
Stock compensation expense			4,487		4,487
Exercise of stock options			93		$ 93
Exercise of stock options, shares		36,009			36,009	[1]
Common stock issued in public offering (ATM), net of costs			597		$ 597
Common stock issued in public offering (ATM), net of costs		73,500,000
Exercise of public warrants			747		$ 747
Exercise of public warrants, shares		64,971,000			64,971
Cashless exercise of liability classified warrants		$ 1	10,166		$ 10,167
Cashless exercise of liability classified warrants, shares		2,348,294
Balance at Mar. 31, 2023		$ 5	$ 54,551	$ (22,241)	$ 32,315
Balance, shares at Mar. 31, 2023		45,795,502
[1]Number of options and weighted average exercise price has been adjusted to reflect the exchange of Legacy Dragonfly’s stock options for New Dragonfly stock options at an exchange ratio of approximately 1.182

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Used in Operating Activities
Net Income (Loss)	$ 4,892,000	$ (2,298,000)
Adjustments to Reconcile Net Income (Loss) to Net Cash
Stock based compensation	4,487,000	288,000
Amortization of debt discount	219,000	613,000
Change in fair market value of warrant liability	(18,523,000)
Deferred tax liability		(527,000)
Non-cash interest expense (paid-in kind)	1,238,000
Provision for doubtful accounts	52,000
Depreciation and amortization	297,000	192,000
Loss on disposal of property and equipment	116,000	62,000
Changes in Assets and Liabilities
Accounts receivable	(1,577,000)	(1,217,000)
Inventories	(1,966,000)	(5,946,000)
Prepaid expenses	(196,000)	(502,000)
Prepaid inventory	299,000	2,425,000
Other current assets	(129,000)	(637,000)
Other assets	308,000	274,000
Income taxes payable		(11,000)
Accounts payable and accrued expenses	6,465,000	(4,119,000)
Customer deposits	180,000	293,000
Total Adjustments	(8,730,000)	(8,812,000)
Net Cash Used in Operating Activities	(3,838,000)	(11,110,000)
Cash Flows From Investing Activities
Purchase of property and equipment	(589,000)	(4,524,000)
Net Cash Used in Investing Activities	(589,000)	(4,524,000)
Cash Flows From Financing Activities
Proceeds from public offering, net	597,000
Proceeds from note payable, related party	1,000,000
Proceeds from exercise of public warrants	747,000
Proceeds from exercise of options	93,000	111,000
Net Cash Provided by Financing Activities	2,437,000	111,000
Net Decrease in Cash and Restricted Cash	(1,990,000)	(15,523,000)
Beginning cash and restricted cash	17,781,000	28,630,000
Ending cash and restricted cash	15,791,000	13,107,000
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	2,003	658
Supplemental Non-Cash Items
Receivable of options exercised		2,000
Purchases of property and equipment, not yet paid	352,000
Cashless exercise of liability classified warrants	$ 10,167,000

NATURE OF BUSINESS

NATURE OF BUSINESS	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF BUSINESS	NOTE 1 - NATURE OF BUSINESS Dragonfly Energy Holdings Corp. (“New Dragonfly” or 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. On October 7, 2022, a merger transaction between Chardan NexTech Acquisition 2 Corporation (“CNTQ”), Dragonfly Energy Corp. (“Legacy Dragonfly”), and Bronco Merger Sub, Inc. (“Merger Sub”) was completed pursuant to which Merger Sub was merged with and into Legacy Dragonfly, with Legacy Dragonfly surviving the merger. As a result of the merger, Legacy Dragonfly became a wholly owned subsidiary of New Dragonfly. Although New Dragonfly was the legal acquirer of Legacy Dragonfly in the merger, Legacy Dragonfly is deemed to be the accounting acquirer, and the historical financial statements of Legacy Dragonfly became the basis for the historical financial statements of New Dragonfly upon the closing of the merger. New Dragonfly together with its wholly owned subsidiary, Dragonfly Energy Corp., is referred to hereinafter as the “Company.” Furthermore, the historical financial statements of Legacy Dragonfly became the historical financial statements of the Company upon the consummation of the merger. As a result, the financial statements included in this Quarterly Report reflect (i) the historical operating results of Legacy Dragonfly prior to the merger; (ii) the combined results of CNTQ and Legacy Dragonfly following the close of the merger; (iii) the assets and liabilities of Legacy Dragonfly at their historical cost and (iv) the Legacy Dragonfly’s equity structure for all periods presented, as affected by the recapitalization presentation after completion of the merger.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of consolidation The accompanying 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. All significant intercompany transactions and balances are eliminated in consolidation. Basis of presentation 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 financial statements should be read along with the Annual Report filed of the Company for the annual period ended December 31, 2022. The consolidated balance sheet as of December 31, 2022 was derived from the audited consolidated financial statements as of and for the year then ended. Dragonfly Energy Holdings Corp. Notes to Unaudited Condensed Consolidated Financial Statements (in thousands, except share and per share data) Going Concern 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. For the three months ended March 31, 2023 and 2022, the Company incurred loss from operations and had negative cash flow from operations. As of March 31, 2023, the Company had $ 15,791 24,533 In connection with the Company’s senior secured term loan facility in an aggregate principal amount of $ 75,000 In addition, the Company may need to raise additional debt and/or equity financings to fund our 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. Recently adopted accounting standards In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The FASB subsequently issued amendments to ASU 2016-13, which have the same effective date and transition date of January 1, 2023. These standards replace the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measure at amortized cost to be presented at the net amount expected to be collected. The Company determined that this change does not have a material impact to the financial statements or financial statement disclosures. Recently issued accounting pronouncements In August 2020, FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) Dragonfly Energy Holdings Corp. Notes to Unaudited Condensed Consolidated Financial Statements (in thousands, except share and per share data) NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Accounts Receivable 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 – 60 days 116 90 Inventory Inventories (Note 4), 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. We continually analyze our slow moving and excess inventories. Based on historical and projected sales volumes and anticipated selling prices, we 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. As of March 31, 2023 and December 31, 2022, no such reserves were necessary. Property and Equipment Property and equipment are stated at cost, including the cost of significant improvements and renovations. Costs of routine repairs and maintenance are charged to expense as incurred. Depreciation and amortization are calculated by the straight line method over the estimated useful lives for owned property, or, for leasehold improvements, over the shorter of the asset’s useful life or term of the lease. Depreciation expense for the three months ended March 31, 2023 and 2022 was $ 297 192 SCHEDULE OF VARIOUS CLASSES OF PROPERTY AND EQUIPMENT AND ESTIMATED USEFUL LIVES Office furniture and equipment 3 7 Vehicles 5 Machinery and equipment 3 7 Leasehold improvements Remaining Term of Lease Use of Estimates 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. Warrants The Company applies relevant accounting guidance for warrants to purchase the Company’s stock based on the nature of the relationship with the counterparty. For warrants issued to investors or lenders in exchange for cash or other financial assets, the Company follows guidance issued within Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity (“ASC 480”), and ASC 815, Derivatives and Hedging (“ASC 815”), to assist in the determination of whether the warrants should be classified as liabilities or equity. Warrants that are determined to require liability classification are measured at fair value upon issuance and are subsequently remeasured to their then fair value at each subsequent reporting period with changes in fair value recorded in current earnings. Warrants that are determined to require equity classification are measured at fair value upon issuance and are not subsequently remeasured unless they are required to be reclassified. Dragonfly Energy Holdings Corp. Notes to Unaudited Condensed Consolidated Financial Statements (in thousands, except share and per share data) NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Revenue Recognition 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. 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, our 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. 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 OEMs are typically due within 30 60 418 238 211 434 Disaggregation of Revenue The following table present our disaggregated revenues by distribution channel: SCHEDULE OF DISAGGREGATED REVENUES BY DISTRIBUTION CHANNEL 2023 2022 For the Three Months Ended March 31, 2023 2022 Sales Retail $ 7,069 $ 13,035 Distributor 2,968 2,087 Original equipment manufacture 8,754 3,181 Total $ 18,791 $ 18,303 Total sales $ 18,791 $ 18,303 Shipping and Handling Shipping and handling fees paid by customers are recorded within net sales, with the related expenses recorded in cost of sales. Shipping and handling costs associated with outbound freight are included in sales and marketing expenses. Shipping and handling costs associated with outbound freight totaled $ 1,007 1,228 Product Warranty The Company offers assurance type warranties from 5 10 400 328 Dragonfly Energy Holdings Corp. Notes to Unaudited Condensed Consolidated Financial Statements (in thousands, except share and per share data) NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Concentrations Receivables from one 50 three 18 10 10 Sales from one 26 Payables to one 67 one 61 For the three months ended March 31, 2023, two 38 10 one 34 Advertising The Company expenses advertising costs as they are incurred and are included in selling and marketing expenses. Advertising expenses amounted to $ 587 781 Stock-Based Compensation 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 option s 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. Dragonfly Energy Holdings Corp. Notes to Unaudited Condensed Consolidated Financial Statements (in thousands, except share and per share data) NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Income Taxes 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. 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 has a liability of $ 128 128 Segment Reporting Operating segments are identified 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. To date, the Company has viewed its operations and manages its business as one

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	NOTE 3 - FAIR VALUE MEASUREMENTS 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. 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: ● Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. ● 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. ● 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. 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. Dragonfly Energy Holdings Corp. Notes to Unaudited Condensed Consolidated Financial Statements (in thousands, except share and per share data) NOTE 3 - FAIR VALUE MEASUREMENTS (CONTINUED) The following table presents assets and liabilities that were measured at fair value in the Consolidated Balance Sheets on a recurring basis as of March 31, 2023: SCHEDULE OF FAIR VALUE, ASSETS AND LIABILITIES Carrying Amount Fair Value (Level 1) (Level 2) (Level 3) As of March 31, 2023 Liabilities Warrant liability- Term Loan $ 4,021 $ 4,021 $ - $ - $ 4,021 Warrant liability- Private placement warrants 120 120 - 120 - Total liabilities $ 4,141 $ 4,141 $ - $ 120 $ 4,021 The following table presents assets and liabilities that were measured at fair value in the Consolidated Balance Sheets on a recurring basis as of December 31, 2022: Carrying Amount Fair Value (Level 1) (Level 2) (Level 3) As of December 31, 2022 Liabilities Warrant liability- Term Loan $ 30,841 $ 30,841 $ - $ - $ 30,841 Warrant liability- Private placement warrants 1,990 1,990 - 1,990 - Total liabilities $ 32,831 $ 32,831 $ - $ 1,990 $ 30,841 The carrying amounts of accounts receivable and accounts payable are considered level 1 and approximate fair value as of March 31, 2023 and December 31, 2022 because of the relatively short maturity of these instruments. The carrying value of the term loan as of March 31, 2023 and December 31, 2022 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. Dragonfly Energy Holdings Corp. Notes to Unaudited Condensed Consolidated Financial Statements (in thousands, except share and per share data)

INVENTORY

INVENTORY	3 Months Ended
	Mar. 31, 2023
Inventory Disclosure [Abstract]
INVENTORY	NOTE 4 - INVENTORY Inventory consists of the following: SCHEDULE OF INVENTORY March 31, 2023 December 31, 2022 Raw material $ 44,310 $ 42,586 Finished goods 7,502 7,260 Total inventory $ 51,812 $ 49,846

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 5 - COMMITMENTS AND CONTINGENCIES Litigation 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. Operating Leases The Company has leases related to the main office, warehouse space, research and development lab, and engineering office, all located in Reno, Nevada. The leases require annual escalating monthly payments ranging from $ 111 128 230 23 21 3 2.4 2 The following table presents the breakout of the operating leases as of: SCHEDULE OF TABLE REPRESENTING THE BREAKOUT OF THE OPERATING LEASES March 31, 2023 December 31, 2022 Operating lease right-of-use assets $ 4,205 $ 4,513 Short-term operating lease liabilities 1,215 1,188 Long-term operating lease liabilities 3,209 3,541 Total operating lease liabilities $ 4,424 $ 4,729 Weighted average remaining lease term 3.4 3.6 Weighted average discount rate 5.2 % 5.2 % Assumptions used in determining our incremental borrowing rate include our implied credit rating and an estimate of secured borrowing rates based on comparable market data. Dragonfly Energy Holdings Corp. Notes to Unaudited Condensed Consolidated Financial Statements (in thousands, except share and per share data) NOTE 5 - COMMITMENTS AND CONTINGENCIES (CONTINUED) Operating Leases (Continued) At March 31, 2023, the future minimum lease payments under these operating leases are as follows: SCHEDULE OF THE FUTURE MINIMUM LEASE PAYMENTS UNDER THE OPERATING LEASES Fiscal Years Ending Amount December 31, 2023 (1) $ 1,054 December 31, 2024 1,435 December 31, 2025 1,435 December 31, 2026 893 Total lease payments 4,817 Less imputed interest 393 Total operating lease liabilities $ 4,424 (1) Represents scheduled payments for the remaining nine-month period ending December 31, 2023. SCHEDULE OF LEASE COST Lease cost Classification March 31, 2023 March 31, 2022 Operating lease cost Cost of goods sold $ 347 $ 172 Operating lease cost Research and development 22 19 Operating lease cost General and administration 12 10 Operating lease cost Selling and marketing 12 14 Total lease cost $ 393 $ 215 Earnout The former holders of shares of Legacy Dragonfly common stock (including shares received as a result of the conversion of Legacy Dragonfly Preferred Stock into New Dragonfly Common Stock) are entitled to receive their pro rata share of up to 40,000,000 15,000,000 250,000 35,000 12,500,000 22.50 12,500,000 32.50 32.50 Other Contingencies See Note 7 for further discussion regarding contingent consideration arising from the April 2022 asset purchase agreement with Thomason Jones Company, LLC. Dragonfly Energy Holdings Corp. Notes to Unaudited Condensed Consolidated Financial Statements (in thousands, except share and per share data)

DEBT

DEBT	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
DEBT	NOTE 6 - DEBT Financing Trust Indenture On November 24, 2021, the Company entered into agreements to issue $ 45,000 45,000 In connection with the merger on October 7, 2022 (the “Closing Date”), the Company entered into a Term Loan, Guarantee and Security Agreement (see “Term Loan Agreement” below) and the outstanding principal balance for the Series 2021-6 Notes underlying the Trust Indenture was paid in full. A loss on extinguishment of $ 4,824 619 613 Dragonfly Energy Holdings Corp. Notes to Unaudited Condensed Consolidated Financial Statements (in thousands, except share and per share data) NOTE 6 - DEBT (CONTINUED) Term Loan Agreement On October 7, 2022, in connection with the merger, CNTQ, Legacy Dragonfly and CCM Investments 5 LLC, an affiliate of CCM LLC (“CCM 5”, and in connection with the Term Loan, the “Chardan Lender”), and EICF Agent LLC (“EIP” and, collectively with the Chardan Lender, the “Initial Term Loan Lenders”) entered into the Term Loan Agreement setting forth the terms of the Term Loan. The Chardan Lender backstopped its commitment under the Debt Commitment Letter by entering into a backstop commitment letter, dated as of May 20, 2022 (the “Backstop Commitment Letter”), with a certain third party financing source (the “Backstop Lender” and collectively with EIP, the “Term Loan Lenders”), pursuant to which the Backstop Lender committed to purchase from the Chardan Lender the aggregate amount of the Term Loan held by the Chardan Lender (the “Backstopped Loans”) immediately following the issuance of the Term Loan on the Closing Date. Pursuant to an assignment agreement, the Backstopped Loans were assigned by CCM 5 to the Backstop Lender on the Closing Date. Pursuant to the terms of the Term Loan Agreement, the Term Loan was advanced in one tranche on the Closing Date. The proceeds of the Term Loan were used (i) to refinance on the Closing Date prior indebtedness (including the obligations underlying the Trust Indenture), (ii) to support the Transaction under the merger Agreement, (iii) for working capital purposes and other corporate purposes, and (iv) to pay any fees associated with transactions contemplated under the Term Loan Agreement and the other loan documents entered into in connection therewith, including the transactions described in the foregoing clauses (i) and (ii) and fees and expenses related to the merger. The Term Loan amortizes in the amount of 5 937.5 24 13.5 7 6.5 7 4.5 6.5 11.5 13.5 1 In addition to optional prepayments by the Company upon written notice, the Term Loan Agreement provides for mandatory prepayments upon receipt of proceeds from certain transactions or casualty events. Beginning on the date the financial statements for the year ended December 31, 2023 are required to be delivered to the Term Loan Lenders, the Company will be required to prepay the Term Loan based on excess cash flow, as defined in the agreement. Unless the obligations under the Term Loan are accelerated under the terms of the agreement, the maturity date will be October 7, 2026. The Term Loan Lenders have been granted a first priority lien, and security interest in, the mortgaged properties underlying the Company’s mortgages. Dragonfly Energy Holdings Corp. Notes to Unaudited Condensed Consolidated Financial Statements (in thousands, except share and per share data) NOTE 6 - DEBT (CONTINUED) Term Loan Agreement (Continued) During the three months ended March 31, 2023, a total of $ 3,496 219 20,699 75,000 2,430 56,731 Financial Covenants Maximum Senior Leverage Ratio The Senior Leverage Ratio is the ratio of (a) consolidated indebtedness, as defined, on such date minus 100% of the unrestricted cash and cash equivalents held (subject to adjustment) to (b) Consolidated earnings before interest, tax and amortization (“EBITDA”) for the trailing twelve (12) fiscal month period most recently ended. If liquidity, as defined, for any fiscal quarter is less than $17,500, the Senior Leverage Ratio shall not be permitted SCHEDULE OF LEVERAGE RATION Test Period Ending Leverage Ratio December 31, 2022 - March 31, 2023 6.75 to 1.00 June 30, 2023 - September 30, 2023 6.00 to 1.00 December 31, 2023 - March 31, 2024 5.00 to 1.00 June 30, 2024 - September 30, 2024 4.00 to 1.00 December 31, 2024 - March 31, 2025 3.25 to 1.00 June 30, 2025 and thereafter 3.00 to 1.00 Liquidity The Company shall not permit their Liquidity (determined on a consolidated basis) to be less than $10,000 as of the last day of each fiscal month (commencing with month ending December 31, 2022) Fixed Charge Coverage Ratio The Fixed Charge Coverage Ratio is the ratio of consolidated EBITDA (less capital expenditures and certain other adjustments) to consolidated fixed charges, as defined in the agreement. If Liquidity is less than $15,000 as of the last day of any fiscal quarter (commencing with the quarter ending December 31, 2022), then the Company shall not permit the Fixed Charge Coverage Ratio for the trailing four quarterly periods ending on the last day of any such quarter to be less than 1.15 to 1.00 Capital Expenditures If consolidated EBITDA for the trailing twelve month period ending on the most recently completed fiscal quarter is less than $15,000, then the level of capital expenditures is limited On March 29, 2023, the Company obtained a waiver from Alter Domus (US) LLC, as administrative agent for the lenders (the “Administrative Agent”) and the Term Loan Lenders of its failures to satisfy the fixed charge coverage ratio and maximum senior leverage ratio with respect to the minimum cash requirements under the Term Loan during the quarter ended March 31, 2023. As a result of the uncertainty of maintaining compliance with financial covenants the Company has continued to classify the entire term loan balance within current liabilities on the balance sheet. Dragonfly Energy Holdings Corp. Notes to Unaudited Condensed Consolidated Financial Statements (in thousands, except share and per share data) NOTE 6 - DEBT (CONTINUED) Debt Maturities At March 31, 2023, the future debt maturities, based on contractual principal payments are as follows: SCHEDULE OF FUTURE DEBT MATURITIES For Year Ended December 31, 2023 (1) $ - 2024 938 2025 3,750 2026 91,775 Total 96,463 Less: Estimated interest paid-in-kind (19,033 ) Total debt 77,430 Less: Unamortized debt issuance costs, noncurrent (56,731 ) Total carrying amount 20,699 Less: Current portion of debt (20,699 ) Total long-term debt $ - (1) Represents scheduled payments for the remaining nine-month period ending December 31, 2023

ASSET PURCHASE AGREEMENT

ASSET PURCHASE AGREEMENT	3 Months Ended
	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
ASSET PURCHASE AGREEMENT	NOTE 7 - ASSET PURCHASE AGREEMENT Bourns Production, Inc On January 1, 2022, the Company entered into an asset purchase agreement (the “APA”) with Bourns Productions, Inc., a Nevada corporation (“Bourns Productions”) pursuant to which the Company acquired machinery, equipment and a lease for a podcast studio from Bourns Productions as set forth in the APA for a purchase price of $ 197 Thomason Jones Company, LLC In April 2022, the Company entered into an Asset Purchase Agreement (the “April 2022 Asset Purchase Agreement”) with William Thomason, Richard Jones, and Thomason Jones Company, LLC (“Thomason Jones”) whereby the Company acquired inventory and intellectual property assets for up to $ 700 1,000 444 Contingent Compensation If, within twenty-four months of the Agreement the Company realizes $ 3,000 1,000 417 1,147 782 Dragonfly Energy Holdings Corp. Notes to Unaudited Condensed Consolidated Financial Statements (in thousands, except share and per share data)

RELATED PARTY

RELATED PARTY	3 Months Ended
	Mar. 31, 2023
Related Party Transactions [Abstract]
RELATED PARTY	NOTE 8 - RELATED PARTY The Company loaned its Chief Financial Officer $ 469 On October 25, 2022, the Company entered into a separation and release of claims agreement with its Chief Operating Officer (“COO”). As consideration for the COO’s execution of the agreement, the Company agreed to pay the employee a lump sum payment of $ 100 1,000 In February 2023, the Company entered into an agreement with its former COO in which the ownership of a Company van was transferred to the former COO in connection with his severance. The Company accounted for the cost of the van as an employee bonus, resulting in $116 of general and administrative expense for the current period. On March 5, 2023, the Company entered into a convertible promissory note (the “Note”) with a board member in the amount of $ 1,000 100

WARRANTS

WARRANTS	3 Months Ended
	Mar. 31, 2023
Warrants
WARRANTS	NOTE 9 - WARRANTS Common Stock Warrants classified as Equity Public Warrants Each Public Warrant entitles the holder to the right to purchase one share of common stock at an exercise price of $ 11.50 0.01 16.00 9,487,500 The measurements of the Public Warrants after the detachment of the Public Warrants from the Units are classified as Level 1 due to the use of an observable market quote in an active market under the ticker DFLIW. For periods subsequent to the detachment of the Public Warrants from the Units, the close price of the Public Warrant price was used as the fair value of the Warrants as of each relevant date. During the quarter ended March 31, 2023, the Company received proceeds from public warrant exercises of $ 747 64,971 Dragonfly Energy Holdings Corp. Notes to Unaudited Condensed Consolidated Financial Statements (in thousands, except share and per share data) NOTE 9 - WARRANTS (CONTINUED) Common Stock Warrants classified as Liability Private Placement Warrants The Private Placement Warrants may not be redeemed by the Company so long as the Private Placement Warrants are held by the initial purchasers, or such purchasers’ permitted transferees. The Private Warrants: (i) will be exercisable either for cash or on a cashless basis at the holders option and (ii) will not be redeemable by the Company, in either case as long as the Private Warrants are held by the initial purchasers or any of their permitted transferees (as prescribed in the Subscription Agreement). The Private Warrants may not be sold, transferred, assigned, pledged or hypothecated, or be the subject of any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition of, the Private Warrants (or any securities underlying the Private Warrants) for a period of one hundred eighty (180) days following the effective date of the Registration Statement to anyone other than any member participating in the Public Offering and the officers or partners thereof, if all securities so transferred remain subject to the lock-up restriction for the remainder of the time period. During the three months ended March 31, 2023, private placement warrant holders exercised 3,126,472 1,100,000 1,501,386 4,627,858 The Private Placement Warrants are classified as Level 2 as the transfer of private placement warrants to anyone who is not a permitted transferee would result in the Private Placement Warrants having substantially similar terms as the Public Warrants (with the exception of a different remaining life). We determined, through use of a Binomial Lattice model, that the fair value of each Private Placement Warrant less a discount for the difference in remaining life is equivalent to that of each Public Warrant. Term Loan Warrants In connection with the entry into the Term Loan Agreement, and as a required term and condition thereof, the Company issued (i) the penny warrants to the Term Loan Lenders exercisable to purchase an aggregate of 2,593,056 1,600,000 10 457,142 1,250,000 1,248,294 Dragonfly Energy Holdings Corp. Notes to Unaudited Condensed Consolidated Financial Statements (in thousands, except share and per share data) NOTE 9 - WARRANTS (CONTINUED) Common Stock Warrants classified as Liability (Continued) The following table provides the significant inputs to the Black-Scholes method for the fair value of the Penny Warrants: SCHEDULE FAIR VALUE WARRANTS As of March 31, 2023 As of December 31, 2022 Common stock price $ 3.00 $ 11.09 Exercise price 0.01 0.01 Dividend yield 0 % 0 % Term 9.52 9.77 Volatility 89.00 % 90.00 % Risk-free rate 3.43 % 3.90 % Fair value $ 2.99 $ 11.89 The following table presents a roll-forward of the Company’s warrants from January 1, 2023 to March 31, 2023: SCHEDULE OF ROLL FORWARD IN WARRANTS Private Warrants: Common Stock Warrants Warrants Outstanding, January 1, 2023 4,627,858 Exercise of warrants (3,126,472 ) Warrants Outstanding, March 31, 2023 1,501,386 There were no private warrants issued, exercised and outstanding from the period January 1, 2022 through March 31, 2022. Public Warrants: Common Stock Warrants Warrants Outstanding, January 1, 2023 9,487,500 Exercise of warrants (64,971 ) Warrants Outstanding, March 31, 2023 9,422,529 There were no public warrants issued, exercised and outstanding from the period January 1, 2022 through March 31, 2022. Term Loan Warrants: Common Stock Warrants Warrants Outstanding, January 1, 2023 2,593,056 Exercise of warrants (1,250,000 ) Warrants Outstanding, March 31, 2023 1,343,056 There were no term loan warrants issued, exercised and outstanding from the period January 1, 2022 through March 31, 2022. The following table presents a roll forward of the aggregate fair values of the Company’s warrant liabilities for which fair value is determined by Level 3 Inputs. The only class of warrants that were determined to be Level 3 are the term loan warrants. Warrant Liability Balances, January 1, 2023 $ 30,841 Exercise of warrants (8,822 ) Change in fair value of warrants (17,998 ) Balances, March 31, 2023 $ 4,021 Dragonfly Energy Holdings Corp. Notes to Unaudited Condensed Consolidated Financial Statements (in thousands, except share and per share data)

COMMON STOCK

COMMON STOCK	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
COMMON STOCK	NOTE 10 - COMMON STOCK The Company is authorized to issue up to 170,000,000 0.0001 For the three months ended March 31, 2023 and 2022, the Company had reserved shares of common stock for issuance as follows: SUMMARY OF RESERVED SHARES OF COMMON STOCK FOR ISSUANCE March 31, 2023 March 31, 2022 Options issued and outstanding 3,731,392 3,631,002 Common stock outstanding 45,795,502 36,581,910 Warrants outstanding 12,266,971 - Earnout shares 40,000,000 - Shares available for future issuance 4,319,309 1,205,790 Total 106,113,174 41,418,702 ChEF Equity Facility The Company and Chardan Capital Markets LLC, a New York limited liability company (“CCM LLC”) entered into a purchase agreement (the “Purchase Agreement”) and a Registration Rights Agreement (the “ChEF RRA”) in connection with the merger. Pursuant to the 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 $ 150 73,500 597

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	NOTE 11 - STOCK-BASED COMPENSATION Share-based compensation expense for options and RSUs totaling $ 4,487 288 4,487 36 29 856 3,566 288 97 37 60 94 Dragonfly Energy Holdings Corp. Notes to Unaudited Condensed Consolidated Financial Statements (in thousands, except share and per share data) NOTE 11 - STOCK-BASED COMPENSATION (CONTINUED) A summary of the Company’s option activity and related information follows: SCHEDULE OF OPTION ACTIVITY AND RELATED INFORMATION Number of Options (1) Weighted-Average Exercise Price Weighted-Average Grant Date Fair Value Weighted-Average Remaining Contractual Life (in years) Aggregate intrinsic value Balances, January 1, 2022 3,690,955 $ 1.98 $ 1.38 8.52 $ 6,550 Options granted - - - - Options forfeited (11,584 ) 1.44 2.17 - Options exercised (48,369 ) 0.49 0.83 - Balances, March 31, 2022 3,631,002 $ 2.00 $ 1.39 8.29 $ 6,377 Balances, January 1, 2023 3,642,958 $ 2.02 $ 1.21 7.90 $ 35,989 Options granted 143,607 7.50 3.82 632 Options forfeited (19,164 ) 7.27 3.71 6 Options exercised (36,009 ) 2.58 1.65 232 Balances, March 31, 2023 3,731,392 $ 2.20 $ 1.30 6.62 $ 3,800 At March 31, 2023 Vested and Exercisable 2,029,985 $ 1.53 4.98 $ 3,120 Vested and expected to vest 3,731,392 $ 2.20 6.62 $ 3,800 (1) Number of options and weighted average exercise price has been adjusted to reflect the exchange of Legacy Dragonfly’s stock options for New Dragonfly stock options at an exchange ratio of approximately 1.182 Restricted Stock Units On October 7, 2022, the Company granted 180,000 2,520 461,998 3,464 Dragonfly Energy Holdings Corp. Notes to Unaudited Condensed Consolidated Financial Statements (in thousands, except share and per share data) NOTE 11 - STOCK-BASED COMPENSATION (CONTINUED) Restricted Stock Units (Continued) There were no grants of restricted stock units prior to October 7, 2022. The following table presents the restricted stock units activity for the three months ended March 31, 2023: SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY Number of Shares Weighted-Average Fair Market Value Unvested shares at January 1, 2023 180,000 $ 14.00 Granted and unvested 461,998 7.50 Vested (461,998 ) 7.50 Unvested shares, March 31, 2023 180,000 $ 14.00 Vested as of March 31, 2023 461,998 $ 7.50 As of March 31, 2023, there were 4,319,309

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
EARNINGS (LOSS) PER SHARE	NOTE 12 - EARNINGS (LOSS) PER SHARE Earnings (Loss) per Common Share The following table sets forth the information needed to compute basic and diluted earnings (loss) per share for the three months ended March 31, 2023 and 2022: SCHEDULE OF INFORMATION NEEDED TO COMPUTE BASIC AND DILUTED EARNINGS PER SHARE March 31, 2023 March 31, 2022 Basic Earnings (Loss) per common share: Net Income (Loss) available to common shareholders $ 4,892 $ (2,298 ) Weighted average number of common shares-basic 45,104,515 36,542,944 Earnings (Loss) per share, basic $ 0.11 $ (0.06 ) Diluted Earnings (Loss) per common share: Net Income (Loss) available to common shareholders $ 4,892 $ (2,298 ) Weighted average number of common shares-basic 45,104,515 36,542,944 Dilutive effect related to stock options and warrants 3,351,481 - Weighted average diluted shares outstanding 48,455,996 36,542,944 Earnings (Loss) per share, diluted $ 0.10 $ (0.06 ) The following table sets forth the number of potential shares of common stock that have been excluded from diluted net income per share net income (loss) per share because their effect was anti-dilutive: SCHEDULE OF POTENTIAL SHARES OF COMMON STOCK EXCLUDED FROM DILUTED NET (LOSS) INCOME PER SHARE March 31, 2023 March 31, 2022 Warrants 10,923,915 - Restricted stock units 111,015 - Options - 3,631,002 Weighted average number of common shares-basic 11,034,930 3,631,002

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 13 – INCOME TAXES The Company’s tax provision and the resulting effective tax rate for interim periods is determined based upon its estimated annual effective tax rate adjusted for the effect of discrete items arising in that quarter. The Company recorded an income tax expense (benefit) of $ 0 527

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 14 – SUBSEQUENT EVENTS On April 1, 2023 the Company paid the $ 1,000 100 On April 26, 2023 (the “Separation Date”), the Company’s Chief Legal Officer’s employment with the Company ended and her employment agreement was deemed terminated as of that date by the Company without cause for purposes of determining severance thereunder. Under the terms of her employment agreement, Ms. Harvey is entitled to receive cash severance equal to $ 334,000

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Principles of consolidation	Principles of consolidation The accompanying 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. All significant intercompany transactions and balances are eliminated in consolidation.
Basis of presentation	Basis of presentation 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 financial statements should be read along with the Annual Report filed of the Company for the annual period ended December 31, 2022. The consolidated balance sheet as of December 31, 2022 was derived from the audited consolidated financial statements as of and for the year then ended. Dragonfly Energy Holdings Corp. Notes to Unaudited Condensed Consolidated Financial Statements (in thousands, except share and per share data)
Going Concern	Going Concern 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. For the three months ended March 31, 2023 and 2022, the Company incurred loss from operations and had negative cash flow from operations. As of March 31, 2023, the Company had $ 15,791 24,533 In connection with the Company’s senior secured term loan facility in an aggregate principal amount of $ 75,000 In addition, the Company may need to raise additional debt and/or equity financings to fund our 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.
Recently adopted accounting standards	Recently adopted accounting standards In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The FASB subsequently issued amendments to ASU 2016-13, which have the same effective date and transition date of January 1, 2023. These standards replace the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measure at amortized cost to be presented at the net amount expected to be collected. The Company determined that this change does not have a material impact to the financial statements or financial statement disclosures.
Recently issued accounting pronouncements	Recently issued accounting pronouncements In August 2020, FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) Dragonfly Energy Holdings Corp. Notes to Unaudited Condensed Consolidated Financial Statements (in thousands, except share and per share data) NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Accounts Receivable	Accounts Receivable 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 – 60 days 116 90
Inventory	Inventory Inventories (Note 4), 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. We continually analyze our slow moving and excess inventories. Based on historical and projected sales volumes and anticipated selling prices, we 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. As of March 31, 2023 and December 31, 2022, no such reserves were necessary.
Property and Equipment	Property and Equipment Property and equipment are stated at cost, including the cost of significant improvements and renovations. Costs of routine repairs and maintenance are charged to expense as incurred. Depreciation and amortization are calculated by the straight line method over the estimated useful lives for owned property, or, for leasehold improvements, over the shorter of the asset’s useful life or term of the lease. Depreciation expense for the three months ended March 31, 2023 and 2022 was $ 297 192 SCHEDULE OF VARIOUS CLASSES OF PROPERTY AND EQUIPMENT AND ESTIMATED USEFUL LIVES Office furniture and equipment 3 7 Vehicles 5 Machinery and equipment 3 7 Leasehold improvements Remaining Term of Lease
Use of Estimates	Use of Estimates 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.
Warrants	Warrants The Company applies relevant accounting guidance for warrants to purchase the Company’s stock based on the nature of the relationship with the counterparty. For warrants issued to investors or lenders in exchange for cash or other financial assets, the Company follows guidance issued within Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity (“ASC 480”), and ASC 815, Derivatives and Hedging (“ASC 815”), to assist in the determination of whether the warrants should be classified as liabilities or equity. Warrants that are determined to require liability classification are measured at fair value upon issuance and are subsequently remeasured to their then fair value at each subsequent reporting period with changes in fair value recorded in current earnings. Warrants that are determined to require equity classification are measured at fair value upon issuance and are not subsequently remeasured unless they are required to be reclassified. Dragonfly Energy Holdings Corp. Notes to Unaudited Condensed Consolidated Financial Statements (in thousands, except share and per share data) NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Revenue Recognition	Revenue Recognition 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. 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, our 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. 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 OEMs are typically due within 30 60 418 238 211 434
Disaggregation of Revenue	Disaggregation of Revenue The following table present our disaggregated revenues by distribution channel: SCHEDULE OF DISAGGREGATED REVENUES BY DISTRIBUTION CHANNEL 2023 2022 For the Three Months Ended March 31, 2023 2022 Sales Retail $ 7,069 $ 13,035 Distributor 2,968 2,087 Original equipment manufacture 8,754 3,181 Total $ 18,791 $ 18,303 Total sales $ 18,791 $ 18,303
Shipping and Handling	Shipping and Handling Shipping and handling fees paid by customers are recorded within net sales, with the related expenses recorded in cost of sales. Shipping and handling costs associated with outbound freight are included in sales and marketing expenses. Shipping and handling costs associated with outbound freight totaled $ 1,007 1,228
Product Warranty	Product Warranty The Company offers assurance type warranties from 5 10 400 328 Dragonfly Energy Holdings Corp. Notes to Unaudited Condensed Consolidated Financial Statements (in thousands, except share and per share data) NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Concentrations	Concentrations Receivables from one 50 three 18 10 10 Sales from one 26 Payables to one 67 one 61 For the three months ended March 31, 2023, two 38 10 one 34
Advertising	Advertising The Company expenses advertising costs as they are incurred and are included in selling and marketing expenses. Advertising expenses amounted to $ 587 781
Stock-Based Compensation	Stock-Based Compensation 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 option s 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. Dragonfly Energy Holdings Corp. Notes to Unaudited Condensed Consolidated Financial Statements (in thousands, except share and per share data) NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Income Taxes	Income Taxes 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. 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 has a liability of $ 128 128
Segment Reporting	Segment Reporting Operating segments are identified 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. To date, the Company has viewed its operations and manages its business as one

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
SCHEDULE OF VARIOUS CLASSES OF PROPERTY AND EQUIPMENT AND ESTIMATED USEFUL LIVES	SCHEDULE OF VARIOUS CLASSES OF PROPERTY AND EQUIPMENT AND ESTIMATED USEFUL LIVES Office furniture and equipment 3 7 Vehicles 5 Machinery and equipment 3 7 Leasehold improvements Remaining Term of Lease
SCHEDULE OF DISAGGREGATED REVENUES BY DISTRIBUTION CHANNEL	The following table present our disaggregated revenues by distribution channel: SCHEDULE OF DISAGGREGATED REVENUES BY DISTRIBUTION CHANNEL 2023 2022 For the Three Months Ended March 31, 2023 2022 Sales Retail $ 7,069 $ 13,035 Distributor 2,968 2,087 Original equipment manufacture 8,754 3,181 Total $ 18,791 $ 18,303 Total sales $ 18,791 $ 18,303

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
SCHEDULE OF FAIR VALUE, ASSETS AND LIABILITIES	The following table presents assets and liabilities that were measured at fair value in the Consolidated Balance Sheets on a recurring basis as of March 31, 2023: SCHEDULE OF FAIR VALUE, ASSETS AND LIABILITIES Carrying Amount Fair Value (Level 1) (Level 2) (Level 3) As of March 31, 2023 Liabilities Warrant liability- Term Loan $ 4,021 $ 4,021 $ - $ - $ 4,021 Warrant liability- Private placement warrants 120 120 - 120 - Total liabilities $ 4,141 $ 4,141 $ - $ 120 $ 4,021 The following table presents assets and liabilities that were measured at fair value in the Consolidated Balance Sheets on a recurring basis as of December 31, 2022: Carrying Amount Fair Value (Level 1) (Level 2) (Level 3) As of December 31, 2022 Liabilities Warrant liability- Term Loan $ 30,841 $ 30,841 $ - $ - $ 30,841 Warrant liability- Private placement warrants 1,990 1,990 - 1,990 - Total liabilities $ 32,831 $ 32,831 $ - $ 1,990 $ 30,841

INVENTORY (Tables)

INVENTORY (Tables)	3 Months Ended
	Mar. 31, 2023
Inventory Disclosure [Abstract]
SCHEDULE OF INVENTORY	Inventory consists of the following: SCHEDULE OF INVENTORY March 31, 2023 December 31, 2022 Raw material $ 44,310 $ 42,586 Finished goods 7,502 7,260 Total inventory $ 51,812 $ 49,846

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
SCHEDULE OF TABLE REPRESENTING THE BREAKOUT OF THE OPERATING LEASES	The following table presents the breakout of the operating leases as of: SCHEDULE OF TABLE REPRESENTING THE BREAKOUT OF THE OPERATING LEASES March 31, 2023 December 31, 2022 Operating lease right-of-use assets $ 4,205 $ 4,513 Short-term operating lease liabilities 1,215 1,188 Long-term operating lease liabilities 3,209 3,541 Total operating lease liabilities $ 4,424 $ 4,729 Weighted average remaining lease term 3.4 3.6 Weighted average discount rate 5.2 % 5.2 %
SCHEDULE OF THE FUTURE MINIMUM LEASE PAYMENTS UNDER THE OPERATING LEASES	At March 31, 2023, the future minimum lease payments under these operating leases are as follows: SCHEDULE OF THE FUTURE MINIMUM LEASE PAYMENTS UNDER THE OPERATING LEASES Fiscal Years Ending Amount December 31, 2023 (1) $ 1,054 December 31, 2024 1,435 December 31, 2025 1,435 December 31, 2026 893 Total lease payments 4,817 Less imputed interest 393 Total operating lease liabilities $ 4,424 (1) Represents scheduled payments for the remaining nine-month period ending December 31, 2023.
SCHEDULE OF LEASE COST	SCHEDULE OF LEASE COST Lease cost Classification March 31, 2023 March 31, 2022 Operating lease cost Cost of goods sold $ 347 $ 172 Operating lease cost Research and development 22 19 Operating lease cost General and administration 12 10 Operating lease cost Selling and marketing 12 14 Total lease cost $ 393 $ 215

DEBT (Tables)

DEBT (Tables)	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
SCHEDULE OF LEVERAGE RATION	SCHEDULE OF LEVERAGE RATION Test Period Ending Leverage Ratio December 31, 2022 - March 31, 2023 6.75 to 1.00 June 30, 2023 - September 30, 2023 6.00 to 1.00 December 31, 2023 - March 31, 2024 5.00 to 1.00 June 30, 2024 - September 30, 2024 4.00 to 1.00 December 31, 2024 - March 31, 2025 3.25 to 1.00 June 30, 2025 and thereafter 3.00 to 1.00
SCHEDULE OF FUTURE DEBT MATURITIES	At March 31, 2023, the future debt maturities, based on contractual principal payments are as follows: SCHEDULE OF FUTURE DEBT MATURITIES For Year Ended December 31, 2023 (1) $ - 2024 938 2025 3,750 2026 91,775 Total 96,463 Less: Estimated interest paid-in-kind (19,033 ) Total debt 77,430 Less: Unamortized debt issuance costs, noncurrent (56,731 ) Total carrying amount 20,699 Less: Current portion of debt (20,699 ) Total long-term debt $ - (1) Represents scheduled payments for the remaining nine-month period ending December 31, 2023

WARRANTS (Tables)

WARRANTS (Tables)	3 Months Ended
	Mar. 31, 2023
Warrants
SCHEDULE FAIR VALUE WARRANTS	The following table provides the significant inputs to the Black-Scholes method for the fair value of the Penny Warrants: SCHEDULE FAIR VALUE WARRANTS As of March 31, 2023 As of December 31, 2022 Common stock price $ 3.00 $ 11.09 Exercise price 0.01 0.01 Dividend yield 0 % 0 % Term 9.52 9.77 Volatility 89.00 % 90.00 % Risk-free rate 3.43 % 3.90 % Fair value $ 2.99 $ 11.89
SCHEDULE OF ROLL FORWARD IN WARRANTS	The following table presents a roll-forward of the Company’s warrants from January 1, 2023 to March 31, 2023: SCHEDULE OF ROLL FORWARD IN WARRANTS Private Warrants: Common Stock Warrants Warrants Outstanding, January 1, 2023 4,627,858 Exercise of warrants (3,126,472 ) Warrants Outstanding, March 31, 2023 1,501,386 There were no private warrants issued, exercised and outstanding from the period January 1, 2022 through March 31, 2022. Public Warrants: Common Stock Warrants Warrants Outstanding, January 1, 2023 9,487,500 Exercise of warrants (64,971 ) Warrants Outstanding, March 31, 2023 9,422,529 There were no public warrants issued, exercised and outstanding from the period January 1, 2022 through March 31, 2022. Term Loan Warrants: Common Stock Warrants Warrants Outstanding, January 1, 2023 2,593,056 Exercise of warrants (1,250,000 ) Warrants Outstanding, March 31, 2023 1,343,056 There were no term loan warrants issued, exercised and outstanding from the period January 1, 2022 through March 31, 2022. The following table presents a roll forward of the aggregate fair values of the Company’s warrant liabilities for which fair value is determined by Level 3 Inputs. The only class of warrants that were determined to be Level 3 are the term loan warrants. Warrant Liability Balances, January 1, 2023 $ 30,841 Exercise of warrants (8,822 ) Change in fair value of warrants (17,998 ) Balances, March 31, 2023 $ 4,021

COMMON STOCK (Tables)

COMMON STOCK (Tables)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
SUMMARY OF RESERVED SHARES OF COMMON STOCK FOR ISSUANCE	For the three months ended March 31, 2023 and 2022, the Company had reserved shares of common stock for issuance as follows: SUMMARY OF RESERVED SHARES OF COMMON STOCK FOR ISSUANCE March 31, 2023 March 31, 2022 Options issued and outstanding 3,731,392 3,631,002 Common stock outstanding 45,795,502 36,581,910 Warrants outstanding 12,266,971 - Earnout shares 40,000,000 - Shares available for future issuance 4,319,309 1,205,790 Total 106,113,174 41,418,702

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
SCHEDULE OF OPTION ACTIVITY AND RELATED INFORMATION	A summary of the Company’s option activity and related information follows: SCHEDULE OF OPTION ACTIVITY AND RELATED INFORMATION Number of Options (1) Weighted-Average Exercise Price Weighted-Average Grant Date Fair Value Weighted-Average Remaining Contractual Life (in years) Aggregate intrinsic value Balances, January 1, 2022 3,690,955 $ 1.98 $ 1.38 8.52 $ 6,550 Options granted - - - - Options forfeited (11,584 ) 1.44 2.17 - Options exercised (48,369 ) 0.49 0.83 - Balances, March 31, 2022 3,631,002 $ 2.00 $ 1.39 8.29 $ 6,377 Balances, January 1, 2023 3,642,958 $ 2.02 $ 1.21 7.90 $ 35,989 Options granted 143,607 7.50 3.82 632 Options forfeited (19,164 ) 7.27 3.71 6 Options exercised (36,009 ) 2.58 1.65 232 Balances, March 31, 2023 3,731,392 $ 2.20 $ 1.30 6.62 $ 3,800 At March 31, 2023 Vested and Exercisable 2,029,985 $ 1.53 4.98 $ 3,120 Vested and expected to vest 3,731,392 $ 2.20 6.62 $ 3,800 (1) Number of options and weighted average exercise price has been adjusted to reflect the exchange of Legacy Dragonfly’s stock options for New Dragonfly stock options at an exchange ratio of approximately 1.182
SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY	There were no grants of restricted stock units prior to October 7, 2022. The following table presents the restricted stock units activity for the three months ended March 31, 2023: SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY Number of Shares Weighted-Average Fair Market Value Unvested shares at January 1, 2023 180,000 $ 14.00 Granted and unvested 461,998 7.50 Vested (461,998 ) 7.50 Unvested shares, March 31, 2023 180,000 $ 14.00 Vested as of March 31, 2023 461,998 $ 7.50

EARNINGS (LOSS) PER SHARE (Tabl

EARNINGS (LOSS) PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
SCHEDULE OF INFORMATION NEEDED TO COMPUTE BASIC AND DILUTED EARNINGS PER SHARE	The following table sets forth the information needed to compute basic and diluted earnings (loss) per share for the three months ended March 31, 2023 and 2022: SCHEDULE OF INFORMATION NEEDED TO COMPUTE BASIC AND DILUTED EARNINGS PER SHARE March 31, 2023 March 31, 2022 Basic Earnings (Loss) per common share: Net Income (Loss) available to common shareholders $ 4,892 $ (2,298 ) Weighted average number of common shares-basic 45,104,515 36,542,944 Earnings (Loss) per share, basic $ 0.11 $ (0.06 ) Diluted Earnings (Loss) per common share: Net Income (Loss) available to common shareholders $ 4,892 $ (2,298 ) Weighted average number of common shares-basic 45,104,515 36,542,944 Dilutive effect related to stock options and warrants 3,351,481 - Weighted average diluted shares outstanding 48,455,996 36,542,944 Earnings (Loss) per share, diluted $ 0.10 $ (0.06 )
SCHEDULE OF POTENTIAL SHARES OF COMMON STOCK EXCLUDED FROM DILUTED NET (LOSS) INCOME PER SHARE	The following table sets forth the number of potential shares of common stock that have been excluded from diluted net income per share net income (loss) per share because their effect was anti-dilutive: SCHEDULE OF POTENTIAL SHARES OF COMMON STOCK EXCLUDED FROM DILUTED NET (LOSS) INCOME PER SHARE March 31, 2023 March 31, 2022 Warrants 10,923,915 - Restricted stock units 111,015 - Options - 3,631,002 Weighted average number of common shares-basic 11,034,930 3,631,002

SCHEDULE OF VARIOUS CLASSES OF

SCHEDULE OF VARIOUS CLASSES OF PROPERTY AND EQUIPMENT AND ESTIMATED USEFUL LIVES (Details)	Mar. 31, 2023
Property, Plant and Equipment [Line Items]
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration]	us-gaap:LeaseholdImprovementsMember
Furniture and Fixtures [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life (in years)	3 years
Furniture and Fixtures [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life (in years)	7 years
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life (in years)	5 years
Machinery and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life (in years)	3 years
Machinery and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life (in years)	7 years

SCHEDULE OF DISAGGREGATED REVEN

SCHEDULE OF DISAGGREGATED REVENUES BY DISTRIBUTION CHANNEL (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Total sales	$ 18,791	$ 18,303
Sales Channel, Directly to Consumer [Member]
Disaggregation of Revenue [Line Items]
Total sales	7,069	13,035
Sales Channel, Through Intermediary [Member]
Disaggregation of Revenue [Line Items]
Total sales	2,968	2,087
Original Equipment Manufacture [Member]
Disaggregation of Revenue [Line Items]
Total sales	$ 8,754	$ 3,181

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	3 Months Ended		12 Months Ended
	Mar. 31, 2023 USD ($) Segment Vendor Customer	Mar. 31, 2022 USD ($) Vendor	Dec. 31, 2022 USD ($) Customer	Mar. 05, 2023 USD ($)
Product Information [Line Items]
Cash and cash equivalents	$ 15,791,000		$ 17,781,000
Working capital	$ 24,533,000
Loan amount				$ 100,000
Period within which payment is due from customers	30 – 60 days
Allowance for doubtful accounts	$ 116,000		90,000
Depreciation expense	297,000	$ 192,000
Customer deposits	418,000		238,000
Customer deposits	211,000		211,000
Revenues	434
Shipping and handling costs	1,007,000	1,228,000
Warrant obilgation outstanding	$ 400,000		$ 328,000
Number of vendors | Customer	1		3
Advertising expense	$ 587,000	$ 781,000
Uncertain tax positions	$ 128,000		$ 128,000
Number of operating segments | Segment	1
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Customer One [Member]
Product Information [Line Items]
Concentration risk, percentage	50%		18%
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Customer Two [Member]
Product Information [Line Items]
Concentration risk, percentage			10%
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Customer Three [Member]
Product Information [Line Items]
Concentration risk, percentage			10%
Sales [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Number of vendors | Customer	1
Sales [Member] | Customer Concentration Risk [Member] | Customer One [Member]
Product Information [Line Items]
Concentration risk, percentage	26%
Accounts Payable [Member] | Customer Concentration Risk [Member] | Vendor [Member]
Product Information [Line Items]
Concentration risk, percentage			61%
Accounts Payable [Member] | Supplier Concentration Risk [Member]
Product Information [Line Items]
Number of vendors | Customer	1		1
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Vendor [Member]
Product Information [Line Items]
Concentration risk, percentage	67%
Total Purchases [Member] | Supplier Concentration Risk [Member]
Product Information [Line Items]
Number of vendors | Vendor	2	1
Total Purchases [Member] | Supplier Concentration Risk [Member] | Vendor One [Member]
Product Information [Line Items]
Concentration risk, percentage	38%
Total Purchases [Member] | Supplier Concentration Risk [Member] | Vendor Two [Member]
Product Information [Line Items]
Concentration risk, percentage	10%
Total Purchases [Member] | Supplier Concentration Risk [Member] | One Vendor [Member]
Product Information [Line Items]
Concentration risk, percentage		34%
Minimum [Member]
Product Information [Line Items]
Payment term for distributors and OEMs	30 days
Term of product warranty provided	5 years
Maximum [Member]
Product Information [Line Items]
Payment term for distributors and OEMs	60 days
Term of product warranty provided	10 years
Senior Secured Term Loan Facility [Member] | Term Loan [Member]
Product Information [Line Items]
Loan amount	$ 75,000,000

SCHEDULE OF FAIR VALUE, ASSETS

SCHEDULE OF FAIR VALUE, ASSETS AND LIABILITIES (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	$ 4,141	$ 32,831
Fair Value	4,141	32,831
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	120	1,990
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	4,021	30,841
Term Loan [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	4,021	30,841
Fair Value	4,021	30,841
Term Loan [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
Term Loan [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
Term Loan [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	4,021	30,841
Private Warrants [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	120	1,990
Fair Value	120	1,990
Private Warrants [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
Private Warrants [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	120	1,990
Private Warrants [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value

SCHEDULE OF INVENTORY (Details)

SCHEDULE OF INVENTORY (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw material	$ 44,310	$ 42,586
Finished goods	7,502	7,260
Total inventory	$ 51,812	$ 49,846

SCHEDULE OF TABLE REPRESENTING

SCHEDULE OF TABLE REPRESENTING THE BREAKOUT OF THE OPERATING LEASES (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Operating lease right-of-use assets	$ 4,205	$ 4,513
Short-term operating lease liabilities	1,215	1,188
Long-term operating lease liabilities	3,209	3,541
Total operating lease liabilities	$ 4,424	$ 4,729
Weighted average remaining lease term	3 years 4 months 24 days	3 years 7 months 6 days
Weighted average discount rate	5.20%	5.20%

SCHEDULE OF THE FUTURE MINIMUM

SCHEDULE OF THE FUTURE MINIMUM LEASE PAYMENTS UNDER THE OPERATING LEASES (Details) - USD ($) $ in Thousands		Mar. 31, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
December 31, 2023	[1]	$ 1,054
December 31, 2024		1,435
December 31, 2025		1,435
December 31, 2026		893
Total lease payments		4,817
Less imputed interest		393
Total operating lease liabilities		$ 4,424	$ 4,729
[1]Represents scheduled payments for the remaining nine-month period ending December 31, 2023.

SCHEDULE OF LEASE COST (Details

SCHEDULE OF LEASE COST (Details) - USD ($) $ in Thousands		3 Months Ended
	Feb. 02, 2022	Mar. 31, 2023	Mar. 31, 2022
Loss Contingencies [Line Items]
Operating lease cost	$ 23	$ 393	$ 215
Cost of Sales [Member]
Loss Contingencies [Line Items]
Operating lease cost		347	172
Research and Development Expense [Member]
Loss Contingencies [Line Items]
Operating lease cost		22	19
General and Administrative Expense [Member]
Loss Contingencies [Line Items]
Operating lease cost		12	10
Selling and Marketing Expense [Member]
Loss Contingencies [Line Items]
Operating lease cost		$ 12	$ 14

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Feb. 02, 2022	Mar. 31, 2023	Mar. 31, 2022
Loss Contingencies [Line Items]
Monthly base rent	$ 230
Operating lease costs	23	$ 393	$ 215
Estimated monthly property taxes	$ 21
Percentage of escalation of monthly base rent	3%
Percentage of escalation of fix operating expense costs	2.40%
Term of due of first payment	2 years
Number of Shares		40,000,000
Audited revenue		$ 250,000
Audited operating income		$ 35,000
Share-Based Payment Arrangement, Tranche One [Member]
Loss Contingencies [Line Items]
Earnout shares issuable		15,000,000
Share-Based Payment Arrangement, Tranche Two [Member]
Loss Contingencies [Line Items]
Earnout shares issuable		12,500,000
Volume weighted average price per share		$ 32.50
Share-Based Payment Arrangement, Tranche Two [Member] | Holders of Outstanding Shares of Legacy Dragonfly Common Stock [Member]
Loss Contingencies [Line Items]
Volume weighted average price per share		$ 22.50
Share-Based Payment Arrangement, Tranche Three [Member]
Loss Contingencies [Line Items]
Earnout shares issuable		12,500,000
Share-Based Payment Arrangement, Tranche Three [Member] | Holders of Outstanding Shares of Legacy Dragonfly Common Stock [Member]
Loss Contingencies [Line Items]
Volume weighted average price per share		$ 32.50
Minimum [Member]
Loss Contingencies [Line Items]
Lease payments		$ 111
Maximum [Member]
Loss Contingencies [Line Items]
Lease payments		$ 128

SCHEDULE OF LEVERAGE RATION (De

SCHEDULE OF LEVERAGE RATION (Details)	3 Months Ended
	Mar. 31, 2023
December 31, 2022 - March 31, 2023 [Member]
Line of Credit Facility [Line Items]
Leverage ratio	6.75 to 1.00
June 30, 2023 - September 30, 2023 [Member]
Line of Credit Facility [Line Items]
Leverage ratio	6.00 to 1.00
December 31, 2024 - March 31, 2025 [Member]
Line of Credit Facility [Line Items]
Leverage ratio	5.00 to 1.00
June 30, 2024 - September 30, 2024 [Member]
Line of Credit Facility [Line Items]
Leverage ratio	4.00 to 1.00
December 31, 2024 - March 31, 2025 [Member]
Line of Credit Facility [Line Items]
Leverage ratio	3.25 to 1.00
June 30, 2025 and Thereafter [Member]
Line of Credit Facility [Line Items]
Leverage ratio	3.00 to 1.00

SCHEDULE OF FUTURE DEBT MATURIT

SCHEDULE OF FUTURE DEBT MATURITIES (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Debt Disclosure [Abstract]
2023		[1]
2024	938
2025	3,750
2026	91,775
Total	96,463
Less: Estimated interest paid-in-kind	(19,033)
Total debt	77,430
Less: Unamortized debt issuance costs, noncurrent	(56,731)
Total carrying amount	20,699
Less: Current portion of debt	(20,699)
Total long-term debt
[1]Represents scheduled payments for the remaining nine-month period ending December 31, 2023

DEBT (Details Narrative)

DEBT (Details Narrative) - USD ($)		3 Months Ended
	Oct. 07, 2022	Mar. 31, 2023	Mar. 31, 2022	Mar. 05, 2023	Nov. 24, 2021
Debt Instrument [Line Items]
Debt instrument, face amount				$ 100,000
Interest expense		$ 3,815,000	$ 1,263,000
Long term debt		77,430,000
Paid in kind interest		1,238,000
Debt Issuance Costs, Net		$ 56,731,000
Liquidity description		The Company shall not permit their Liquidity (determined on a consolidated basis) to be less than $10,000 as of the last day of each fiscal month (commencing with month ending December 31, 2022)
Fixed charge coverage ratio description		The Fixed Charge Coverage Ratio is the ratio of consolidated EBITDA (less capital expenditures and certain other adjustments) to consolidated fixed charges, as defined in the agreement. If Liquidity is less than $15,000 as of the last day of any fiscal quarter (commencing with the quarter ending December 31, 2022), then the Company shall not permit the Fixed Charge Coverage Ratio for the trailing four quarterly periods ending on the last day of any such quarter to be less than 1.15 to 1.00
Capital expenditures description		If consolidated EBITDA for the trailing twelve month period ending on the most recently completed fiscal quarter is less than $15,000, then the level of capital expenditures is limited
Senior Secured Term Loan Facility [Member] | Term Loan Agreement [Member]
Debt Instrument [Line Items]
Debt instrument, amortization percentage	5%
Debt instrument, amortization amount	$ 937,500
Debt instrument, amortization period	24 months
Basis spread on variable rate	13.50%
Senior Secured Term Loan Facility [Member] | Term Loan Agreement [Member] | Until April 1 2023 [Member] | Adjusted Secured Overnight Financing Rate [Member]
Debt Instrument [Line Items]
Variable rate, payable in cash	7%
Variable rate, payable in kind	6.50%
Senior Secured Term Loan Facility [Member] | Term Loan Agreement [Member] | After April 1, 2023 Until October 1, 2024 [Member] | Adjusted Secured Overnight Financing Rate [Member]
Debt Instrument [Line Items]
Variable rate, payable in cash	7%
Senior Secured Term Loan Facility [Member] | Term Loan Agreement [Member] | After April 1, 2023 Until October 1, 2024 [Member] | Adjusted Secured Overnight Financing Rate [Member] | Minimum [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1%
Variable rate, payable in cash	11.50%
Variable rate, payable in kind	4.50%
Senior Secured Term Loan Facility [Member] | Term Loan Agreement [Member] | After April 1, 2023 Until October 1, 2024 [Member] | Adjusted Secured Overnight Financing Rate [Member] | Maximum [Member]
Debt Instrument [Line Items]
Variable rate, payable in cash	13.50%
Variable rate, payable in kind	6.50%
Maximum Senior Leverage Ratio [Member]
Debt Instrument [Line Items]
Debt instrument description		The Senior Leverage Ratio is the ratio of (a) consolidated indebtedness, as defined, on such date minus 100% of the unrestricted cash and cash equivalents held (subject to adjustment) to (b) Consolidated earnings before interest, tax and amortization (“EBITDA”) for the trailing twelve (12) fiscal month period most recently ended. If liquidity, as defined, for any fiscal quarter is less than $17,500, the Senior Leverage Ratio shall not be permitted
Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument, face amount					$ 45,000,000
Debt instrument, insured amount					$ 45,000,000
Loss on extinguishment		$ 4,824,000
Interest expense			$ 619,000
Amortization of debt issuance costs		613,000
Senior Notes [Member] | Term Loan Agreement [Member]
Debt Instrument [Line Items]
Debt instrument, face amount		75,000,000
Amortization of debt issuance costs		219,000
Interest expense		3,496,000
Long term debt		20,699,000
Paid in kind interest		2,430,000
Debt Issuance Costs, Net		$ 56,731,000

ASSET PURCHASE AGREEMENT (Detai

ASSET PURCHASE AGREEMENT (Details Narrative) - USD ($)		1 Months Ended	3 Months Ended
	Jan. 01, 2022	Apr. 30, 2022	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Asset Acquisition [Line Items]
Revenues			$ 434
Repayment to related party			211,000		$ 211,000
Selling and marketing expense			4,184,000	$ 3,092,000
Related Party [Member]
Asset Acquisition [Line Items]
Repayment to related party			1,000,000
Bourns Production, Inc [Member]
Asset Acquisition [Line Items]
Purchase price for acquiring machinery and equipment	$ 197,000
Thomason Jones Company LLC [Member]
Asset Acquisition [Line Items]
Purchase price for acquiring machinery and equipment			444,000
Contingent payments		$ 1,000,000
Revenues			3,000,000
Selling and marketing expense			417,000
Accrued expense			1,147,000		$ 782,000
Thomason Jones Company LLC [Member] | Related Party [Member]
Asset Acquisition [Line Items]
Repayment to related party			$ 1,000,000
Thomason Jones Company LLC [Member] | Maximum [Member]
Asset Acquisition [Line Items]
Purchase price for acquiring machinery and equipment		$ 700,000

RELATED PARTY (Details Narrativ

RELATED PARTY (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 05, 2023	Dec. 31, 2022
Related Party Transaction [Line Items]
Repayment to related party	$ 211		$ 211
Original princial amount		$ 100
Board of Directors Chairman [Member]
Related Party Transaction [Line Items]
Promissory note		$ 1,000
Related Party [Member]
Related Party Transaction [Line Items]
Repayment to related party	1,000
Chief Operating Officer [Member]
Related Party Transaction [Line Items]
Repayment to officer	100
Promissory Note with Related Party | Chief Financial Officer [Member]
Related Party Transaction [Line Items]
Repayment to officer	$ 469

SCHEDULE FAIR VALUE WARRANTS (D

SCHEDULE FAIR VALUE WARRANTS (Details)	Mar. 31, 2023 $ / shares	Dec. 31, 2022 $ / shares
Common stock price		$ 11.09
Common stock price		$ 11.89
Measurement Input, Share Price [Member]
Common stock price		0.01
Measurement Input, Expected Dividend Rate [Member]
Common stock price		0
Measurement Input, Expected Term [Member]
Term		9 years 9 months 7 days
Measurement Input, Price Volatility [Member]
Common stock price		90
Measurement Input, Risk Free Interest Rate [Member]
Common stock price		3.90
Initial Measurement [Member]
Common stock price	$ 3
Common stock price	$ 2.99
Initial Measurement [Member] | Measurement Input, Share Price [Member]
Common stock price	0.01
Initial Measurement [Member] | Measurement Input, Expected Dividend Rate [Member]
Common stock price	0
Initial Measurement [Member] | Measurement Input, Expected Term [Member]
Term	9 years 6 months 7 days
Initial Measurement [Member] | Measurement Input, Price Volatility [Member]
Common stock price	89
Initial Measurement [Member] | Measurement Input, Risk Free Interest Rate [Member]
Common stock price	3.43

SCHEDULE OF ROLL FORWARD IN WAR

SCHEDULE OF ROLL FORWARD IN WARRANTS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Change in fair value of warrants	$ 18,523
Private Warrants [Member]
Warrants Outstanding, January 1, 2023	4,627,858
Exercise of warrants	(3,126,472)
Warrants Outstanding, March 31, 2023	1,501,386
Public Warrants [Member]
Warrants Outstanding, January 1, 2023	9,487,500
Exercise of warrants	(64,971)
Warrants Outstanding, March 31, 2023	9,422,529
Term Loan Warrants [Member]
Warrants Outstanding, January 1, 2023	2,593,056
Exercise of warrants	(1,250,000)
Warrants Outstanding, March 31, 2023	1,343,056
Warrant [Member]
Balances, January 1, 2023	$ 30,841
Exercise of warrants	(8,822)
Change in fair value of warrants	(17,998)
Balances, March 31, 2023	$ 4,021

WARRANTS (Details Narrative)

WARRANTS (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Oct. 10, 2022	Mar. 31, 2022
Class of Warrant or Right [Line Items]
Exercise price of warrants	$ 11.50
Share price		$ 11.09
Warrants outstanding	12,266,971
Exercise of public warrants	$ 747
Exercise of public warrants, shares	64,971
Common Stock [Member]
Class of Warrant or Right [Line Items]
Exercise of public warrants
Exercise of public warrants, shares	64,971,000
Warrants, shares	73,500,000
Public Warrants [Member]
Class of Warrant or Right [Line Items]
Exercise price of warrants	$ 0.01
Share price	$ 16
Warrants outstanding	9,487,500
Private Placement Warrants [Member]
Class of Warrant or Right [Line Items]
Warrants outstanding	1,501,386	4,627,858
Warrants to purchase shares	3,126,472
Warrants, shares	1,100,000
Penny Warrants [Member]
Class of Warrant or Right [Line Items]
Warrants to purchase shares	2,593,056
Penny Warrants [Member] | Common Stock [Member]
Class of Warrant or Right [Line Items]
Warrants to purchase shares	1,250,000
10 Warrants [Member]
Class of Warrant or Right [Line Items]
Share price	$ 10
Warrants to purchase shares	1,600,000		457,142
10 Warrants [Member] | Common Stock [Member]
Class of Warrant or Right [Line Items]
Warrants to purchase shares		1,248,294

SUMMARY OF RESERVED SHARES OF C

SUMMARY OF RESERVED SHARES OF COMMON STOCK FOR ISSUANCE (Details) - shares		Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Equity [Abstract]
Options issued and outstanding	[1]	3,731,392	3,642,958	3,631,002	3,690,955
Common stock outstanding		45,795,502	43,272,728	36,581,910
Warrants outstanding		12,266,971
Earnout shares		40,000,000
Shares available for future issuance		4,319,309		1,205,790
Total		106,113,174		41,418,702
[1]Number of options and weighted average exercise price has been adjusted to reflect the exchange of Legacy Dragonfly’s stock options for New Dragonfly stock options at an exchange ratio of approximately 1.182

COMMON STOCK (Details Narrative

COMMON STOCK (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Common stock, shares authorized	170,000,000	170,000,000
Common stock, par value	$ 0.0001	$ 0.0001
Purchase Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of shares issued	73,500
Aggregate net proceeds	$ 597
Purchase Agreement [Member] | Maximum [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Aggregated purchase price	$ 150,000

SCHEDULE OF OPTION ACTIVITY AND

SCHEDULE OF OPTION ACTIVITY AND RELATED INFORMATION (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Share-Based Payment Arrangement [Abstract]
Number of Options, Balance at the beginning	[1]	3,642,958	3,690,955
Weighted- Average Exercise Price - Balances at the beginning		$ 2.02	$ 1.98
Weighted- Average Grant Date Fair Value, Balances at the beginning		$ 1.21	$ 1.38
Weighted- Average Remaining Contractual Life (in years)		7 years 10 months 24 days	8 years 6 months 7 days
Aggregate Intrinsic value Balances at the beginning		$ 35,989	$ 6,550
Number of Options granted	[1]	143,607
Weighted- Average Exercise Price Options granted		$ 7.50
Weighted- Average Grant Date Fair Value, Options granted		$ 3.82
Aggregate Intrinsic value Options granted		$ 632
Number of Options forfeited	[1]	(19,164)	(11,584)
Weighted- Average Exercise Price Options forfeited		$ 7.27	$ 1.44
Weighted- Average Grant Date Fair Value, Options forfeited		$ 3.71	$ 2.17
Aggregate Intrinsic value Options forfeited		$ 6
Number of Options exercised	[1]	(36,009)	(48,369)
Weighted- Average Exercise Price Options exercised		$ 2.58	$ 0.49
Weighted- Average Grant Date Fair Value, Options exercised		$ 1.65	$ 0.83
Aggregate Intrinsic value Options exercised		$ 232
Number of Options, Balance at the end	[1]	3,731,392	3,631,002
Weighted- Average Exercise Price Balances at the end		$ 2.20	$ 2
Weighted- Average Grant Date Fair Value,Balances at the end		$ 1.30	$ 1.39
Weighted- Average Remaining Contractual Life (in years)		6 years 7 months 13 days	8 years 3 months 14 days
Aggregate Intrinsic value Balances at the end		$ 3,800	$ 6,377
Number of Options, Vested and Exercisable	[1]	2,029,985
Weighted- Average Exercise Price Vested and Exercisable		$ 1.53
Weighted- Average Remaining Contractual Life (in years)		4 years 11 months 23 days
Aggregate Intrinsic value Vested and Exercisable		$ 3,120
Number of Options, Vested and expected to vest	[1]	3,731,392
Weighted- Average Exercise Price Vested and expected to vest (in dollars per share)		$ 2.20
Weighted- Average Remaining Contractual Life (in years)		6 years 7 months 13 days
Aggregate Intrinsic value Vested and expected to vest		$ 3,800
[1]Number of options and weighted average exercise price has been adjusted to reflect the exchange of Legacy Dragonfly’s stock options for New Dragonfly stock options at an exchange ratio of approximately 1.182

SCHEDULE OF OPTION ACTIVITY A_2

SCHEDULE OF OPTION ACTIVITY AND RELATED INFORMATION (Details) (Parenthetical)	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Stock option exchange ratio	1.182

SCHEDULE OF RESTRICTED STOCK UN

SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY (Details) - Restricted Stock Units (RSUs) [Member]	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares , beginning balance	180,000
Weighted average fair market value , beginning balance | $ / shares	$ 14
Number of shares granted and unvested	461,998
Weighted average fair market value granted and unvested | $ / shares	$ 7.50
Number of shares vested	(461,998)
Weighted average fair market value vested | $ / shares	$ 7.50
Number of shares , ending balance	180,000
Weighted average fair market value , beginning balance | $ / shares	$ 14
Number of shares ,vested	461,998
Weighted average fair market value,vested	7.50

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details Narrative) - USD ($) $ in Thousands			3 Months Ended
	Feb. 10, 2023	Oct. 07, 2022	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total compensation			$ 4,487	$ 288
2022 Equity Incentive Plan and Employee Stock Purchase Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unissued authorized and available for future awards			4,319,309
Cost of Sales [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total compensation			$ 36	97
Research and Development Expense [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total compensation			29	37
Selling and Marketing Expense [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total compensation			856	60
General and Administrative Expense [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total compensation			3,566	94
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total compensation			$ 4,487	$ 288
Restricted Stock Units	461,998	180,000	180,000		180,000
Restricted stock units, value	$ 3,464	$ 2,520

SCHEDULE OF INFORMATION NEEDED

SCHEDULE OF INFORMATION NEEDED TO COMPUTE BASIC AND DILUTED EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Basic Earnings (Loss) per common share:
Net Income (Loss) available to common shareholders	$ 4,892	$ (2,298)
Weighted average number of common shares-basic	45,104,515	36,542,944
Earnings (Loss) per share, basic	$ 0.11	$ (0.06)
Diluted Earnings (Loss) per common share:
Dilutive effect related to stock options and warrants	3,351,481
Weighted average diluted shares outstanding	48,455,996	36,542,944
Earnings (Loss) per share, diluted	$ 0.10	$ (0.06)

SCHEDULE OF POTENTIAL SHARES OF

SCHEDULE OF POTENTIAL SHARES OF COMMON STOCK EXCLUDED FROM DILUTED NET (LOSS) INCOME PER SHARE (Details) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Purchase an aggregate shares	11,034,930	3,631,002
Share-Based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Purchase an aggregate shares		3,631,002
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Purchase an aggregate shares	111,015
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Purchase an aggregate shares	10,923,915

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income tax expense benefit		$ 527

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($) $ in Thousands	Apr. 26, 2023	Apr. 01, 2023	Mar. 05, 2023
Subsequent Event [Line Items]
Original princial amount			$ 100
Board of Directors Chairman [Member]
Subsequent Event [Line Items]
Promissory note			$ 1,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Original princial amount		$ 100
Subsequent Event [Member] | Board of Directors Chairman [Member]
Subsequent Event [Line Items]
Promissory note		$ 1,000
Subsequent Event [Member] | Ms Harvey [Member]
Subsequent Event [Line Items]
Cash	$ 334,000