Dragonfly Energy Faces Nasdaq Delisting

Published 13/06/2025, 21:58
Dragonfly Energy Faces Nasdaq Delisting

Dragonfly Energy Holdings Corp. (NASDAQ:DFLI) has received notice from Nasdaq that it is not in compliance with the minimum Market Value of Listed Securities (MVLS) requirement, which could lead to delisting from the Nasdaq Capital Market. The company, which specializes in miscellaneous electrical machinery, equipment, and supplies, has been unable to maintain the required MVLS of $35 million over the past 30 consecutive business days. With a current market capitalization of just $3.14 million and an InvestingPro Financial Health Score of 0.61 (labeled as "WEAK"), the company faces significant challenges.

In addition to the MVLS issue, Dragonfly Energy is also not meeting the $1.00 minimum bid price requirement, another condition for continued listing on the Nasdaq Capital Market. The company’s common stock has closed below this threshold for the last 30 consecutive business days preceding the notice. Currently trading at $0.30, near its 52-week low of $0.33, the stock has experienced a dramatic decline of nearly 96% over the past year.

Dragonfly Energy has requested a hearing with the Nasdaq Hearings Panel, which is scheduled for June 24, 2025, to present its plan for regaining compliance. The company’s securities will continue to trade on the Nasdaq under the ticker symbols "DFLI" for common stock and "DFLIW" for redeemable warrants, pending the outcome of the hearing and any granted extension period.

The company is exploring options to address these deficiencies and regain compliance with Nasdaq’s continued listing requirements. However, there is no assurance that the Panel will grant the request for continued listing or that Dragonfly Energy will be able to demonstrate compliance with the bid price and MVLS requirements within any extension period that may be granted. This information is based on a recent SEC filing.

In other recent news, Dragonfly Energy Holdings Corp reported its first-quarter 2025 earnings, revealing a 6.8% year-over-year revenue increase to $13.4 million. Despite the revenue growth, the company experienced a net loss of $6.8 million, or $0.93 per diluted share. The company’s gross margin improved by 500 basis points to 29.4%, and it projects a 12% revenue growth for the second quarter of 2025. Additionally, Dragonfly Energy anticipates an adjusted EBITDA loss of $3.5 million for the upcoming quarter. In other developments, Rick Parod resigned from Dragonfly Energy’s Board of Directors, effective May 31, 2025, with no disagreements cited as the reason for his departure. The company has not yet announced a replacement for the vacant board position. Analyst feedback from Canaccord Securities highlighted interest in the company’s dry electrode technology and its financial health, underscoring investor attention on innovation and profitability.

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