Dragonfly Energy Holdings Corp. Material Event - What Happened

Hey there! Let's break down some recent news about Dragonfly Energy Holdings Corp. in a way that makes sense, without all the confusing business talk. Think of this as me explaining it to you over coffee.

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1. What happened? (The Big News)

Okay, so Dragonfly Energy, the company that makes those cool lithium batteries (you know, the ones often used in RVs, boats, and off-grid setups), just announced something important. They've completed a "reverse stock split." This means that for every ten shares of their common stock that existed, they've now combined them into one single share. So, if you owned 100 shares, you now own 10 shares.

2. When did it happen?

This news just came out yesterday, on December 18, 2025. The reverse stock split officially took effect at 6:00 a.m. Eastern Time, and the stock started trading on this new, adjusted basis when the market opened. So it's fresh off the press!

3. Why did it happen? (The Backstory)

Companies don't just do things for no reason, right? So, why did Dragonfly make this move? Back on October 15, 2025, the company's stockholders gave their approval for the Board of Directors to implement a reverse stock split. They authorized the Board to choose a ratio between 1-for-2 and 1-for-50. Then, on December 2, 2025, the Board decided on the 1-for-10 ratio.

A reverse stock split is typically done to increase the price per share of a company's stock. This can be important for a few reasons:

• Meeting exchange requirements: Stock exchanges like Nasdaq often have minimum price requirements. If a stock trades below a certain price for too long, it risks being delisted. A reverse split can boost the price above that threshold.
• Making the stock more attractive: Some investors, especially larger institutional investors, prefer to invest in stocks that trade at a higher price per share, as lower-priced stocks can sometimes be perceived as less stable or "penny stocks." Basically, it's usually about making the company stronger, growing, or dealing with a challenge.

4. Why does this matter? (The "So What?")

This is the important part! What does this change mean for Dragonfly and everyone involved? The main thing is that the number of shares you own goes down, but the price per share goes up proportionally. For example, if the stock was trading at $1.00 per share before the split, after a 1-for-10 split, it would theoretically trade at $10.00 per share. Your total investment value should remain the same immediately after the split (100 shares at $1.00 = $100; 10 shares at $10.00 = $100).

The company's goal is likely to boost its share price, potentially to meet Nasdaq listing requirements and make the stock more appealing to a broader range of investors. The split did not change the par value of the stock or the total number of shares the company is authorized to issue.

5. Who is affected?

A move like this usually touches a few different groups:

• The Company Itself (Dragonfly Energy): This directly impacts their stock structure and market perception, potentially helping them maintain their listing on Nasdaq.
• Their Employees: If employees hold stock options or warrants, these will be adjusted to reflect the new, lower number of shares and higher exercise price.
• Their Customers: This event doesn't directly impact customers or the products they buy.
• Their Investors (People who own stock): This is a big one for stock owners. You now own fewer shares, but each share is worth more. If you would have ended up with a fractional share (e.g., 15 shares becoming 1.5 shares), the company will pay you cash for that fractional part instead of issuing half a share.
• Their Competitors: Other battery companies will be watching closely to see how this move impacts Dragonfly's market standing and investor confidence.

6. What happens next? (Looking Ahead)

So, what can we expect to see unfold after this news? The stock will continue to trade on The Nasdaq Capital Market under its existing ticker symbol "DFLI," but now at the new, higher price per share. The market will react to this change, and the stock price might fluctuate as investors digest the news and the reasons behind the split. We'll be watching to see if this move helps the company maintain its Nasdaq listing and attract new investors.

7. What should investors/traders know? (Your Takeaways)

If you own stock in Dragonfly Energy or are thinking about it, here's the simple version of what to keep in mind: While the number of shares you own has changed, your overall investment value should be the same right after the split. The company's goal is often to increase its share price, which can be a positive sign for its market standing. However, a reverse split doesn't change the underlying value or health of the company itself, only how its shares are structured. Keep an eye on how the market reacts and whether the stock maintains its higher price.

Always remember to do your own homework and consider how this news fits into your overall investment strategy. Don't just jump in or out based on one piece of news!