Dragonfly Energy (DFLI) 10-Q21 Aug 232023 Q2 Quarterly reportFinancial data

Company Profile

Cover

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2023	Aug. 16, 2023
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2023
Document Fiscal Period Focus	Q2
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		58,780,316
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	Jun. 30, 2023	Dec. 31, 2022
Current Assets
Cash	$ 32,952	$ 17,781
Accounts receivable, net of allowance for credit losses	2,172	1,444
Inventory	44,198	49,846
Prepaid expenses	1,199	1,624
Prepaid inventory	2,942	2,002
Prepaid income tax	529	525
Other current assets	239	267
Total Current Assets	84,231	73,489
Property and Equipment
Machinery and equipment	15,932	10,214
Office furniture and equipment	275	275
Leasehold improvements	1,727	1,709
Vehicle	33	195
Total	17,967	12,393
Less accumulated depreciation and amortization	(2,180)	(1,633)
Property and Equipment, Net	15,787	10,760
Operating lease right of use asset	3,912	4,513
Total Assets	103,930	88,762
Current Liabilities
Accounts payable	19,990	13,475
Accrued payroll and other liabilities	9,758	6,295
Customer deposits	152	238
Uncertain tax position liability	128	128
Operating lease liability, current portion	1,239	1,188
Total Current Liabilities	53,639	40,566
Long-Term Liabilities
Warrant liabilities	14,637	32,831
Accrued expenses-long term	551	492
Operating lease liability, net of current portion	2,890	3,541
Total Long-Term Liabilities	18,078	36,864
Total Liabilities	71,717	77,430
Commitments and Contingencies (See Note 5)
Equity
Common stock, 170,000,000 shares at $0.0001 par value, authorized, 58,504,541 and 43,272,728 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively	6	4
Preferred stock, 5,000,000 shares at $0.0001 par value, authorized, no shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively
Additional paid in capital	66,148	38,461
Retained deficit	(33,941)	(27,133)
Total Equity	32,213	11,332
Total Liabilities and Shareholders’ Equity	103,930	88,762
Nonrelated Party [Member]
Current Liabilities
Notes payable, current portion, net of deferred financing fees	$ 22,372	$ 19,242

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 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 issued	58,504,541	43,272,728
Common stock, shares outstanding	58,504,541	43,272,728
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

Condensed Interim Consolidated

Condensed Interim Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Net Sales	$ 19,274	$ 21,622	$ 38,065	$ 39,925
Cost of Goods Sold	15,176	14,594	29,224	27,402
Gross Profit	4,098	7,028	8,841	12,523
Operating Expenses
Research and development	1,067	859	1,947	1,198
General and administrative	7,614	3,816	17,109	7,442
Selling and marketing	3,808	2,881	7,992	5,973
Total Operating Expenses	12,489	7,556	27,048	14,613
Loss From Operations	(8,391)	(528)	(18,207)	(2,090)
Other (Expense) Income
Interest expense	(4,113)	(1,228)	(7,928)	(2,491)
Change in fair market value of warrant liability	804		19,327
Total Other (Expense) Income	(3,309)	(1,228)	11,399	(2,491)
Loss Before Taxes	(11,700)	(1,756)	(6,808)	(4,581)
Income Tax (Benefit) Expense		(287)		(814)
Net Loss	$ (11,700)	$ (1,469)	$ (6,808)	$ (3,767)
Loss Per Share- Basic	$ (0.25)	$ (0.04)	$ (0.15)	$ (0.10)
Loss Per Share- Diluted	$ (0.25)	$ (0.04)	$ (0.15)	$ (0.10)
Weighted Average Number of Shares- Basic	47,418,269	36,616,430	46,263,591	36,579,990
Weighted Average Number of Shares- Diluted	47,418,269	36,616,430	46,263,591	36,579,990

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 – March 31, 2023 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
Balance at Mar. 31, 2022			$ 4	4,020	10,140	14,164
Balance, shares at Mar. 31, 2022			36,597,372
Balance – March 31, 2023 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
Net income (loss)						$ (3,767)
Exercise of stock options, shares	[1]					254,623
Balance at Jun. 30, 2022			$ 4	4,540	8,671	$ 13,215
Balance, shares at Jun. 30, 2022			36,749,738
Balance – March 31, 2023 at Mar. 31, 2022			$ 4	4,020	10,140	14,164
Balance, shares at Mar. 31, 2022			36,597,372
Net income (loss)					(1,469)	(1,469)
Stock compensation expense				431		431
Exercise of stock options				89		89
Exercise of stock options, shares			152,366
Balance at Jun. 30, 2022			$ 4	4,540	8,671	13,215
Balance, shares at Jun. 30, 2022			36,749,738
Balance – March 31, 2023 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
Common stock issued in public offering (ATM), net of costs				597		597
Common stock issued in public offering (ATM), net of costs, shares			73,500,000
Exercise of public warrants				747		747
Exercise of public warrants, shares			64,971,000
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
Balance – March 31, 2023 at Dec. 31, 2022			$ 4	38,461	(27,133)	11,332
Balance, shares at Dec. 31, 2022			43,272,728
Net income (loss)						$ (6,808)
Exercise of stock options, shares	[1]					105,121
Common stock issued in public offering (ATM), net of costs, shares			10,000,000
Exercise of public warrants						$ 747
Exercise of public warrants, shares						64,971
Balance at Jun. 30, 2023			$ 6	66,148	(33,941)	$ 32,213
Balance, shares at Jun. 30, 2023			58,504,541
Balance – March 31, 2023 at Mar. 31, 2023			$ 5	54,551	(22,241)	32,315
Balance, shares at Mar. 31, 2023			45,795,502
Net income (loss)					(11,700)	(11,700)
Stock compensation expense				954		954
Exercise of stock options				230		230
Exercise of stock options, shares			69,012
Cashless exercise of liability classified warrants				2,462		2,462
Cashless exercise of liability classified warrants, shares			748,029
Common stock issued in public offering, net of costs			$ 1	7,877		7,878
Common stock issued in public offering, net of costs, shares			11,405,000,000
Common stock issued in public offering (ATM), net of costs				74		74
Common stock issued in public offering (ATM), net of costs, shares			25,000
Shares issued for vested restricted stock units
Shares issued for vested restricted stock units, shares			461,998
Balance at Jun. 30, 2023			$ 6	$ 66,148	$ (33,941)	$ 32,213
Balance, shares at Jun. 30, 2023			58,504,541

[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				6 Months Ended		18 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023
Used in Operating Activities
Net Loss	$ (11,700,000)	$ 4,892,000	$ (1,469,000)	$ (2,298,000)	$ (6,808,000)	$ (3,767,000)
Adjustments to Reconcile Net Loss to Net Cash
Stock based compensation	954,000		431,000		5,441,000	719,000	$ 719,000
Amortization of debt discount					620,000	1,196,000
Change in fair market value of warrant liability	(804,000)				(19,327,000)
Deferred tax liability						(819,000)
Non-cash interest expense (Paid-in Kind)					2,510,000
Provision for doubtful accounts					93,000
Depreciation and amortization					593,000	389,000
Loss on disposal of property and equipment					116,000	62,000
Changes in Assets and Liabilities
Accounts receivable					(821,000)	(3,876,000)
Inventories					5,648,000	(15,141,000)
Prepaid expenses					425,000	(1,236,000)
Prepaid inventory					(940,000)	4,308,000
Other current assets					28,000	(1,962,000)
Other assets					601,000	551,000
Income taxes payable					(4,000)	(973,000)
Accounts payable and accrued expenses					6,272,000	820,000
Customer deposits					(86,000)	(183,000)
Total Adjustments					1,169,000	(16,145,000)
Net Cash Used in Operating Activities					(5,639,000)	(19,912,000)
Cash Flows from Investing Activities
Purchase of property and equipment					(2,571,000)	(4,819,000)
Net Cash Used in Investing Activities					(2,571,000)	(4,819,000)
Cash Flows from Financing Activities
Proceeds from public offering, net					22,002,000
Payment of offering costs					(362,000)
Proceeds from public offering (ATM), net					671,000
Proceeds from note payable, related party					1,000,000
Repayment of note payable, related party					(1,000,000)
Proceeds from exercise of public warrants					747,000
Proceeds from exercise of options					323,000	200,000
Net Cash Provided by Financing Activities					23,381,000	200,000
Net Increase (Decrease) in Cash					15,171,000	(24,531,000)
Beginning cash		$ 17,781,000		$ 28,630,000	17,781,000	28,630,000	28,630,000
Ending cash	$ 32,952,000		$ 4,099,000		32,952,000	4,099,000	$ 32,952,000
Supplemental Disclosures of Cash Flow Information:
Cash paid for income taxes					237
Cash paid for interest					4,361	1,254
Supplemental Non-Cash Items
Receivable of options exercised						2,000
Purchases of property and equipment, not yet paid					3,583,000
Cashless exercise of liability classified warrants					$ 12,628,000

NATURE OF BUSINESS

NATURE OF BUSINESS	6 Months Ended
NATURE OF BUSINESS	Jun. 30, 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 was 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	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Jun. 30, 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 condensed and consolidated 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 six months ended June 30, 2023 and 2022, the Company incurred loss from operations and had negative cash flow from operations. As of June 30, 2023, the Company had $ 32,952 30,592 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 There were no recently adopted accounting standards that had a material impact on the Company’s financial statements. There were no recently issued accounting standards not yet adopted which would have a material effect on the Company’s financial statements. 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 – 90 days 131 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 establish 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 June 30, 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 six months ended June 30, 2023 and 2022 was $ 593 389 296 197 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 90 152 238 221 434 Disaggregation of Revenue The following table present our disaggregated revenues by distribution channel: SCHEDULE OF DISAGGREGATED REVENUES BY DISTRIBUTION CHANNEL Sales 2023 2022 2023 2022 For The Three Months Ended June 30, For The Six Months Ended June 30, Sales 2023 2022 2023 2022 Retail 5,829 11,850 $ 12,898 $ 24,885 Distributor 4,143 2,534 7,111 4,621 Original equipment manufacture 9,302 7,238 18,056 10,419 Total $ 19,274 $ 21,622 $ 38,065 $ 39,925 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 $ 1,958 2,534 951 1,306 Product Warranty The Company offers assurance type warranties from 5 10 329 328 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 two 22 20 18 10 10 Sales from one 26 11 one 27 15 Payables to two 56 10 61 For the six months ended June 30, 2023, one 22 one 26 one 10 two 17 15 Advertising The Company expenses advertising costs as they are incurred and are included in selling and marketing expenses.. Advertising expenses amounted to $ 1,270 1,262 683 481 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 0.0001 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 as of June 30, 2023, and December 31, 2022 of uncertain tax positions. The Company’s accounting policy is to include penalties and interest related to income taxes if any, in selling, general and administrative expenses. 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	6 Months Ended
FAIR VALUE MEASUREMENTS	Jun. 30, 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 Condensed Consolidated Balance Sheets on a recurring basis as of June 30, 2023: SCHEDULE OF FAIR VALUE, ASSETS AND LIABILITIES Carrying Amount Fair Value (Level 1) (Level 2) (Level 3) As of June 30, 2023 Liabilities Warrant liability- Term Loan $ 875 $ 875 $ - $ - $ 875 Warrant liability- June public offering 13,612 13,612 - - 13,612 Warrant liability- Private placement warrants 150 150 - 150 - Total liabilities $ 14,637 $ 14,637 $ - $ 150 $ 14,487 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 June 30, 2023 and December 31, 2022 because of the relatively short maturity of these instruments. The carrying value of the term loan as of June 30, 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	6 Months Ended
INVENTORY	Jun. 30, 2023
Inventory Disclosure [Abstract]
INVENTORY	Note 4 - INVENTORY Inventory consists of the following: SCHEDULE OF INVENTORY June 30, December 31, 2022 Raw material $ 38,713 $ 42,586 Finished goods 5,485 7,260 Total inventory $ 44,198 $ 49,846

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
COMMITMENTS AND CONTINGENCIES	Jun. 30, 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 June 30, December 31, 2022 Operating lease right-of-use assets $ 3,912 $ 4,513 Short-term operating lease liabilities 1,239 1,188 Long-term operating lease liabilities 2,890 3,541 Total operating lease liabilities $ 4,129 $ 4,729 Weighted average remaining lease term 3.1 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 June 30, 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) $ 704 December 31, 2024 1,435 December 31, 2025 1,435 December 31, 2026 893 Total lease payments 4,467 Less imputed interest 338 Total operating lease liabilities $ 4,129 (1) Represents scheduled payments for the remaining six-month period ending December 31, 2023 SCHEDULE OF LEASE COST For The Three Months Ended For The Six Months Ended Lease cost Classification 2023 2022 2023 2022 Operating lease cost Cost of goods sold $ 348 $ 355 $ 695 $ 527 Operating lease cost Research and development 23 40 45 59 Operating lease cost General and administration 12 20 24 30 Operating lease cost Selling and marketing 12 20 24 30 Total lease cost $ 395 $ 435 $ 788 $ 646 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	6 Months Ended
DEBT	Jun. 30, 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 1,254 1,197 635 584 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 and six months ended June 30, 2023, a total of $ 3,651 7,147 401 620 The carrying balance of $ 22,372 75,000 3,702 56,330 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 RATIO 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 $17,500 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 The Company was in compliance with its covenants as of June 30, 2023 and December 31, 2022. During the three months ended March 31, 2023, the Company determined it would fail to satisfy the fixed charge coverage ratio and maximum senior leverage ratio for the quarter. On March 29, 2023, the Company obtained a waiver from 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) Future Debt Maturities At June 30, 2023, the future debt maturities are as follows: SCHEDULE OF FUTURE DEBT MATURITIES For Year Ended December 31, 2023 (1) $ - 2024 938 2025 3,750 2026 80,620 Total 85,308 Less: Estimated interest paid-in-kind (6,606 ) Total debt 78,702 Less: Unamortized debt issuance costs, noncurrent (56,330 ) Total carrying amount 22,372 Less: Current portion of debt (22,372 ) Total long-term debt $ - (1) Represents scheduled payments for the remaining six-month period ending December 31, 2023

ASSET PURCHASE AGREEMENT

ASSET PURCHASE AGREEMENT	6 Months Ended
ASSET PURCHASE AGREEMENT	Jun. 30, 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 1,909 782 Dragonfly Energy Holdings Corp. Notes to Unaudited Condensed Consolidated Financial Statements (in thousands, except share and per share data)

RELATED PARTY

RELATED PARTY	6 Months Ended
RELATED PARTY	Jun. 30, 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 COO waived their rights to a transaction bonus resulting from the merger transaction (Note 1) in lieu of a Company van. 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 On April 26, 2023, the Company entered into a separation and release of claims agreement with its Chief Legal Officer (“CLO”). As consideration for the CLO’s execution of the agreement, the Company agreed to pay the employee payments equivalent to $ 720 76

WARRANTS

WARRANTS	6 Months Ended
WARRANTS	Jun. 30, 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 six months ended June 30, 2023, the Company received proceeds from public warrant exercises of $ 747 64,971 June 2023 Offering In connection with the entry into the underwriting agreement as further described in Note 10 of the financial statements, (the “June 2023 Offering”) the Company issued (i) underwriters warrants to purchase up to an aggregate of 570,250 shares of Common Stock (the “Underwriters’ Warrants”) which are exercisable upon issuance and will expire on June 20, 2028. The initial exercise price of the Underwriters’ Warrants is $ 2.50 per share, which equals 125 % of the per share public offering price in the June 2023 Offering and (ii) warrants to purchase up to 10,000,000 shares of Common Stock to the investors in the offering together with shares of Common Stock (the “Investor Warrants”), at the combined public offering price of $ 2.00 per share of Common Stock and accompanying Warrant, less underwriting discounts and commissions . The Company also granted the underwriters a 45-day over-allotment option to purchase up to an additional 1,500,000 shares of Common Stock and/or Investor Warrants to purchase up to 1,500,000 shares of Common Stock at the public offering price per security, less underwriting discounts and commissions. The underwriters exercised its over-allotment option to purchase an additional 1,405,000 shares of Common Stock and Investor Warrants to purchase up to 1,405,000 shares of Common Stock. The Company accounts for the Investor Warrants issued in connection with the Offering in accordance with the guidance contained in ASC 815-40. Such guidance provides that because the Investor Warrants do not meet the criteria for equity treatment thereunder, each warrant must be recorded as a liability. This liability is subject to re-measurement at each balance sheet date. With each such re-measurement, the warrant liabilities will be adjusted to its current fair value, with the change in fair value recognized in the Company’s statement of operations. The Company will reassess the classification at each balance sheet date. It was determined that the Underwriters’ Warrants were not precluded from equity treatment and have been accounted for as such. Underwriter Warrants: SCHEDULE OF UNDERWRITER WARRANTS Common Stock Warrants Warrants Outstanding, January 1, 2023 - Warrants issued 570,250 Warrants Outstanding, June 30, 2023 570,250 There were no underwriter warrants issued, exercised and outstanding from the period January 1, 2022 through June 30, 2022. 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 six months ended June 30, 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 shares (the “Penny Warrants”) and (ii) the $10 warrants to issue warrants to the Term Loan Lenders exercisable to purchase an aggregate of 1,600,000 shares of common stock at $ 10 per share (the “$10 Warrants” and, together with the Penny Warrants, the “Term Loan Warrants”). The $10 Warrants were exercised on a cashless basis on October 10, 2022, with the Company issuing 457,142 shares of Common Stock in connection with such exercise. During the three months ended June 30, 2023, penny warrant holders exercised 750,000 warrants on a cashless basis, with the Company agreeing to issue 748,029 shares of common stock in connection with such exercise. The Company concluded the warrants are not considered indexed to the Company’s stock and to be accounted for as liabilities under ASC 815. As such, the estimated fair value is recognized as a liability each reporting period, with changes in the fair value recognized within income each period. 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 As of Common stock price $ 1.48 $ 11.09 Exercise price 0.01 0.01 Dividend yield 0 % 0 % Term (in years) 9.27 9.77 Volatility 119.00 % 90.00 % Risk-free rate 3.80 % 3.90 % Fair value $ 1.48 $ 11.89 The following table provides the significant inputs to the Black-Scholes method for the fair value of the June Offering Warrants: As of As of (Initial Measurement) Common stock price $ 1.48 $ 1.50 Exercise price $ 2.00 $ 2.00 Dividend yield 0 % 0 % Term (in years) 4.98 5 Volatility 119.00 % 118.00 % Risk-free rate 4.10 % 4.00 % Fair value $ 1.19 $ 1.21 The following table presents a roll-forward of the Company’s warrants from January 1, 2023 to June 30, 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, June 30, 2023 1,501,386 There were no private warrants issued, exercised and outstanding from the period January 1, 2022 through June 30, 2022. Public Warrants: Common Stock Warrants Warrants Outstanding, January 1, 2023 9,487,500 Exercise of warrants (64,971 ) Warrants Outstanding, June 30, 2023 9,422,529 There were no public warrants issued, exercised and outstanding from the period January 1, 2022 through June 30, 2022. Term Loan Warrants: Common Stock Warrants Warrants Outstanding, January 1, 2023 2,593,056 Exercise of warrants (2,000,000 ) Warrants Outstanding, June 30, 2023 593,056 There were no term loan warrants issued, exercised and outstanding from the period January 1, 2022 through June 30, 2022. Investor Warrants: Common Stock Warrants Warrants Outstanding, January 1, 2023 - Warrants issued 11,405,000 Warrants Outstanding, June 30, 2023 11,405,000 There were no investor warrants issued, exercised and outstanding from the period January 1, 2022 through June 30, 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 Issuance of warrants 13,762 Exercise of warrants (11,284 ) Change in fair value of warrants (18,832 ) Balances, June 30, 2023 $ 14,487 Dragonfly Energy Holdings Corp. Notes to Unaudited Condensed Consolidated Financial Statements (in thousands, except share and per share data)

COMMON STOCK

COMMON STOCK	6 Months Ended
COMMON STOCK	Jun. 30, 2023
Equity [Abstract]
COMMON STOCK	Note 10 - COMMON STOCK The Company is authorized to issue up to 170,000,000 0.0001 58,504,541 43,272,728 For the six months ended June 30, 2023 and 2022, the Company had reserved shares of common stock for issuance as follows: SUMMARY OF RESERVED SHARES OF COMMON STOCK FOR ISSUANCE June 30, June 30, Options issued and outstanding 3,443,099 4,008,139 Common stock outstanding 58,504,541 36,749,738 Warrants outstanding 23,492,221 - Earnout shares 40,000,000 - Shares available for future issuance 4,434,916 622,491 Total 129,874,777 41,380,368 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 98,500 671 June 2023 Offering In the June 2023 Offering, the Company sold an aggregate of (i) 10,000,000 10,000,000 2.00 1,500,000 1,500,000 2.00 2.50 June 20, 2028 The Company granted the underwriters a 45-day over-allotment option to purchase up to an additional 1,500,000 1,500,000 1,405,000 1,405,000 The Company received gross proceeds of $ 22,810 2,074 1,169 905 13,762 Dragonfly Energy Holdings Corp. Notes to Unaudited Condensed Consolidated Financial Statements (in thousands, except share and per share data)

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
STOCK-BASED COMPENSATION	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	Note 11 - STOCK-BASED COMPENSATION Share-based compensation expense for options and RSUs totaling $ 5,441 and $ 719 was recognized in the Company’s consolidated statements of operations for the six months ended June 30, 2023 and 2022, respectively. Share-based compensation expense for options and RSUs totaling $ 954 and $ 431 was recognized in the Company’s consolidated statements of operations for the three months ended June 30, 2023 and 2022, respectively. Share-based compensation for the six months ended June 30, 2023 and 2022 was allocated as follows: SCHEDULE OF STOCK BASED COMPENSATION 2023 2022 June 30, 2023 2022 Cost of goods sold $ 75 $ 143 Research and development 49 171 Selling and marketing 971 192 General and administrative expense 4,346 213 Total $ 5,441 $ 719 Share-based compensation for the three months ended June 30, 2023 and 2022 was allocated as follows: 2023 2022 June 30, 2023 2022 Cost of goods sold $ 39 $ 46 Research and development 20 134 Selling and marketing 115 132 General and administrative expense 780 119 Total $ 954 $ 431 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 602,275 4.08 1.81 - Options forfeited (30,468 ) 2.93 2.32 - Options exercised (254,623 ) 0.94 2.39 - Balances, June 30, 2022 4,008,139 $ 2.36 $ 1.72 8.43 $ 5,845 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 (238,345 ) 3.53 1.62 369 Options exercised (105,121 ) 3.07 5.91 298 Balances, June 30, 2023 3,443,099 $ 2.11 $ 1.27 6.16 $ 1,520 At June 30, 2023 Vested and Exercisable 2,164,874 $ 1.55 4.89 $ 1,389 Vested and expected to vest 3,443,099 $ 2.11 6.16 $ 1,520 (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 28,000 28,000 105 7 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 six months ended June 30, 2023: SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY Number of Weighted-Average Fair Market Value Unvested shares at January 1, 2023 180,000 $ 14.00 Granted and unvested 489,998 7.29 Vested (461,998 ) 7.50 Unvested shares, June 30, 2023 208,000 $ 14.00 Vested and exercisable as of June 30, 2023 - $ - As of June 30, 2023, there were 4,434,916

SUPPLIER AGREEMENT

SUPPLIER AGREEMENT	6 Months Ended
SUPPLIER AGREEMENT	Jun. 30, 2023
Supplier Agreement
SUPPLIER AGREEMENT	Note 12 – SUPPLIER AGREEMENT On May 9, 2023, Ioneer Rhyolite Ridge LLC (“Seller”), an emerging lithium-boron producer, and the Company announced a commercial offtake agreement partnership whereby the Seller is developing the Rhyolite Ridge Project which, once completed, is expected to produce lithium carbonate, and boric acid (the “Project”). Beginning on the supply start date which is the date the Seller notifies the Company that the project is fully completed and commissioned in accordance with the engineering, procurement and construction contract, and for the duration of the supply period, the Company shall purchase and receive product from Seller, on the terms and conditions of the agreement. The agreement calls for a minimum annual purchase requirement. The agreement becomes effective when the seller has informed the Company that the seller has made a positive financial investment decision in respect of the project.

LOSS PER SHARE

LOSS PER SHARE	6 Months Ended
LOSS PER SHARE	Jun. 30, 2023
Earnings Per Share [Abstract]
LOSS PER SHARE	Note 13 - LOSS PER SHARE The Company follows the two two two Basic net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding. In addition, in computing the dilutive effect of convertible securities, the numerator is adjusted to add back any convertible preferred dividends. Diluted net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares that would have been outstanding during the period assuming the issuance of common shares for all potential dilutive common shares outstanding. Potential common shares consist of potential future exercises of outstanding stock options and common stock warrants. Because the inclusion of potential common shares would be anti-dilutive for all periods presented, they have been excluded from the calculation. The Company’s common stock warrants contractually entitle the holders of such securities to participate in dividends but do not not not three June 30, 2023 and 2022. The following table sets forth the information needed to compute basic and diluted loss per share for the three and six months ended June 30, 2023 and 2022: SCHEDULE OF INFORMATION NEEDED TO COMPUTER BASIC AND DILUTED EARNINGS PER SHARE 2023 2022 2023 2022 For The Three Months For The Six Months 2023 2022 2023 2022 Numerator Net Loss attributable to common stockholders $ (11,700 ) $ (1,469 ) $ (6,808 ) $ (3,767 ) Denominator Weighted average common shares outstanding used to compute net loss per share, basic and diluted 47,418,269 36,616,430 46,263,591 36,579,990 Weighted average common shares outstanding,basic 47,418,269 36,616,430 46,263,591 36,579,990 Net loss per share of common stock, basic and diluted $ (0.25 ) $ (0.04 ) $ (0.15 ) $ (0.10 ) Net loss per share of common stock, basic $ (0.25 ) $ (0.04 ) $ (0.15 ) $ (0.10 ) Dragonfly Energy Holdings Corp. Notes to Unaudited Condensed Consolidated Financial Statements (in thousands, except share and per share data) The following table sets forth the number of potential shares of common stock that have been excluded from diluted net loss per share because their effect was anti-dilutive: SCHEDULE OF POTENTIAL SHARES OF COMMON STOCK EXCLUDED FROM DILUTED NET (LOSS) INCOME PER SHARE June 30, 2023 June 30, 2022 Warrants 23,492,221 - Restricted stock units 208,000 - Options 3,443,099 4,008,139 Weighted average number of common shares-basic 27,143,320 4,008,139

INCOME TAXES

INCOME TAXES	6 Months Ended
INCOME TAXES	Jun. 30, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 14 – 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 ($814)

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
SUBSEQUENT EVENTS	Jun. 30, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 15 – SUBSEQUENT EVENTS Subsequent to the period ending June 30, 2023, and through August 8, 2023, 273,100 546 In July 2023, upon a request from the Company’s lenders under the term loan agreement, the Company repaid $ 5,275 of principal to satisfy a portion of its outstanding principal under the term loan agreement. On July 6, 2023, the Company opened a 12-month time deposit account at Wells Fargo Commercial Banking amounting to $ 315 2 July 6, 2024 In July of 2023, the Company was notified by its largest RV OEM customer that, due to weaker demand for its products and their subsequent focus on reducing costs, it would no longer install the Company’s storage solutions as standard equipment, but rather return to offering those solutions as an option to dealers and consumers. While this customer is not moving to a different solution or competitor, the Company expects this change in strategy to have a material limiting effect on the Company’s revenue throughout the remainder of 2023. On August 20, 2023, upon mutual agreement between the Company and Mr. Marchetti, Mr. Marchetti resigned from his position as the Company’s Chief Financial Officer. Mr. Marchetti will continue in the role of Senior Vice President, Operations. In connection with Mr. Marchetti’s resignation, on August 20, 2023, the Board appointed Denis Phares, the Company’s President, Chief Executive Officer, and Chairman of the Board, to succeed Mr. Marchetti as the Company’s interim Chief Financial Officer. Dr. Phares will continue his duties as President, Chief Executive Officer, and Chairman of the Board. The Company intends to commence a search for a full time Chief Financial Officer.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Jun. 30, 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 condensed and consolidated 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 six months ended June 30, 2023 and 2022, the Company incurred loss from operations and had negative cash flow from operations. As of June 30, 2023, the Company had $ 32,952 30,592 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 There were no recently adopted accounting standards that had a material impact on the Company’s financial statements. There were no recently issued accounting standards not yet adopted which would have a material effect on the Company’s financial statements. 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 – 90 days 131 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 establish 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 June 30, 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 six months ended June 30, 2023 and 2022 was $ 593 389 296 197 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 90 152 238 221 434
Disaggregation of Revenue	Disaggregation of Revenue The following table present our disaggregated revenues by distribution channel: SCHEDULE OF DISAGGREGATED REVENUES BY DISTRIBUTION CHANNEL Sales 2023 2022 2023 2022 For The Three Months Ended June 30, For The Six Months Ended June 30, Sales 2023 2022 2023 2022 Retail 5,829 11,850 $ 12,898 $ 24,885 Distributor 4,143 2,534 7,111 4,621 Original equipment manufacture 9,302 7,238 18,056 10,419 Total $ 19,274 $ 21,622 $ 38,065 $ 39,925
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 $ 1,958 2,534 951 1,306
Product Warranty	Product Warranty The Company offers assurance type warranties from 5 10 329 328 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 two 22 20 18 10 10 Sales from one 26 11 one 27 15 Payables to two 56 10 61 For the six months ended June 30, 2023, one 22 one 26 one 10 two 17 15
Advertising	Advertising The Company expenses advertising costs as they are incurred and are included in selling and marketing expenses.. Advertising expenses amounted to $ 1,270 1,262 683 481
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 0.0001 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 as of June 30, 2023, and December 31, 2022 of uncertain tax positions. The Company’s accounting policy is to include penalties and interest related to income taxes if any, in selling, general and administrative expenses.
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)	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	Jun. 30, 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 Sales 2023 2022 2023 2022 For The Three Months Ended June 30, For The Six Months Ended June 30, Sales 2023 2022 2023 2022 Retail 5,829 11,850 $ 12,898 $ 24,885 Distributor 4,143 2,534 7,111 4,621 Original equipment manufacture 9,302 7,238 18,056 10,419 Total $ 19,274 $ 21,622 $ 38,065 $ 39,925

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
FAIR VALUE MEASUREMENTS (Tables)	Jun. 30, 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 Condensed Consolidated Balance Sheets on a recurring basis as of June 30, 2023: SCHEDULE OF FAIR VALUE, ASSETS AND LIABILITIES Carrying Amount Fair Value (Level 1) (Level 2) (Level 3) As of June 30, 2023 Liabilities Warrant liability- Term Loan $ 875 $ 875 $ - $ - $ 875 Warrant liability- June public offering 13,612 13,612 - - 13,612 Warrant liability- Private placement warrants 150 150 - 150 - Total liabilities $ 14,637 $ 14,637 $ - $ 150 $ 14,487 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)	6 Months Ended
INVENTORY (Tables)	Jun. 30, 2023
Inventory Disclosure [Abstract]
SCHEDULE OF INVENTORY	Inventory consists of the following: SCHEDULE OF INVENTORY June 30, December 31, 2022 Raw material $ 38,713 $ 42,586 Finished goods 5,485 7,260 Total inventory $ 44,198 $ 49,846

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
COMMITMENTS AND CONTINGENCIES (Tables)	Jun. 30, 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 June 30, December 31, 2022 Operating lease right-of-use assets $ 3,912 $ 4,513 Short-term operating lease liabilities 1,239 1,188 Long-term operating lease liabilities 2,890 3,541 Total operating lease liabilities $ 4,129 $ 4,729 Weighted average remaining lease term 3.1 3.6 Weighted average discount rate 5.2 % 5.2 %
SCHEDULE OF THE FUTURE MINIMUM LEASE PAYMENTS UNDER THE OPERATING LEASES	At June 30, 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) $ 704 December 31, 2024 1,435 December 31, 2025 1,435 December 31, 2026 893 Total lease payments 4,467 Less imputed interest 338 Total operating lease liabilities $ 4,129
SCHEDULE OF LEASE COST	SCHEDULE OF LEASE COST For The Three Months Ended For The Six Months Ended Lease cost Classification 2023 2022 2023 2022 Operating lease cost Cost of goods sold $ 348 $ 355 $ 695 $ 527 Operating lease cost Research and development 23 40 45 59 Operating lease cost General and administration 12 20 24 30 Operating lease cost Selling and marketing 12 20 24 30 Total lease cost $ 395 $ 435 $ 788 $ 646

DEBT (Tables)

DEBT (Tables)	6 Months Ended
DEBT (Tables)	Jun. 30, 2023
Debt Disclosure [Abstract]
SCHEDULE OF LEVERAGE RATIO	SCHEDULE OF LEVERAGE RATIO 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 June 30, 2023, the future debt maturities are as follows: SCHEDULE OF FUTURE DEBT MATURITIES For Year Ended December 31, 2023 (1) $ - 2024 938 2025 3,750 2026 80,620 Total 85,308 Less: Estimated interest paid-in-kind (6,606 ) Total debt 78,702 Less: Unamortized debt issuance costs, noncurrent (56,330 ) Total carrying amount 22,372 Less: Current portion of debt (22,372 ) Total long-term debt $ - (1) Represents scheduled payments for the remaining six-month period ending December 31, 2023

WARRANTS (Tables)

WARRANTS (Tables)	6 Months Ended
WARRANTS (Tables)	Jun. 30, 2023
Warrants
SCHEDULE OF UNDERWRITER WARRANTS	Underwriter Warrants: SCHEDULE OF UNDERWRITER WARRANTS Common Stock Warrants Warrants Outstanding, January 1, 2023 - Warrants issued 570,250 Warrants Outstanding, June 30, 2023 570,250
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 As of Common stock price $ 1.48 $ 11.09 Exercise price 0.01 0.01 Dividend yield 0 % 0 % Term (in years) 9.27 9.77 Volatility 119.00 % 90.00 % Risk-free rate 3.80 % 3.90 % Fair value $ 1.48 $ 11.89 The following table provides the significant inputs to the Black-Scholes method for the fair value of the June Offering Warrants: As of As of (Initial Measurement) Common stock price $ 1.48 $ 1.50 Exercise price $ 2.00 $ 2.00 Dividend yield 0 % 0 % Term (in years) 4.98 5 Volatility 119.00 % 118.00 % Risk-free rate 4.10 % 4.00 % Fair value $ 1.19 $ 1.21
SCHEDULE OF ROLL FORWARD IN WARRANTS	The following table presents a roll-forward of the Company’s warrants from January 1, 2023 to June 30, 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, June 30, 2023 1,501,386 There were no private warrants issued, exercised and outstanding from the period January 1, 2022 through June 30, 2022. Public Warrants: Common Stock Warrants Warrants Outstanding, January 1, 2023 9,487,500 Exercise of warrants (64,971 ) Warrants Outstanding, June 30, 2023 9,422,529 There were no public warrants issued, exercised and outstanding from the period January 1, 2022 through June 30, 2022. Term Loan Warrants: Common Stock Warrants Warrants Outstanding, January 1, 2023 2,593,056 Exercise of warrants (2,000,000 ) Warrants Outstanding, June 30, 2023 593,056 There were no term loan warrants issued, exercised and outstanding from the period January 1, 2022 through June 30, 2022. Investor Warrants: Common Stock Warrants Warrants Outstanding, January 1, 2023 - Warrants issued 11,405,000 Warrants Outstanding, June 30, 2023 11,405,000 There were no investor warrants issued, exercised and outstanding from the period January 1, 2022 through June 30, 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 Issuance of warrants 13,762 Exercise of warrants (11,284 ) Change in fair value of warrants (18,832 ) Balances, June 30, 2023 $ 14,487

COMMON STOCK (Tables)

COMMON STOCK (Tables)	6 Months Ended
COMMON STOCK (Tables)	Jun. 30, 2023
Equity [Abstract]
SUMMARY OF RESERVED SHARES OF COMMON STOCK FOR ISSUANCE	For the six months ended June 30, 2023 and 2022, the Company had reserved shares of common stock for issuance as follows: SUMMARY OF RESERVED SHARES OF COMMON STOCK FOR ISSUANCE June 30, June 30, Options issued and outstanding 3,443,099 4,008,139 Common stock outstanding 58,504,541 36,749,738 Warrants outstanding 23,492,221 - Earnout shares 40,000,000 - Shares available for future issuance 4,434,916 622,491 Total 129,874,777 41,380,368

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
STOCK-BASED COMPENSATION (Tables)	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
SCHEDULE OF STOCK BASED COMPENSATION	Share-based compensation for the six months ended June 30, 2023 and 2022 was allocated as follows: SCHEDULE OF STOCK BASED COMPENSATION 2023 2022 June 30, 2023 2022 Cost of goods sold $ 75 $ 143 Research and development 49 171 Selling and marketing 971 192 General and administrative expense 4,346 213 Total $ 5,441 $ 719 Share-based compensation for the three months ended June 30, 2023 and 2022 was allocated as follows: 2023 2022 June 30, 2023 2022 Cost of goods sold $ 39 $ 46 Research and development 20 134 Selling and marketing 115 132 General and administrative expense 780 119 Total $ 954 $ 431
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 602,275 4.08 1.81 - Options forfeited (30,468 ) 2.93 2.32 - Options exercised (254,623 ) 0.94 2.39 - Balances, June 30, 2022 4,008,139 $ 2.36 $ 1.72 8.43 $ 5,845 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 (238,345 ) 3.53 1.62 369 Options exercised (105,121 ) 3.07 5.91 298 Balances, June 30, 2023 3,443,099 $ 2.11 $ 1.27 6.16 $ 1,520 At June 30, 2023 Vested and Exercisable 2,164,874 $ 1.55 4.89 $ 1,389 Vested and expected to vest 3,443,099 $ 2.11 6.16 $ 1,520 (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 six months ended June 30, 2023: SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY Number of Weighted-Average Fair Market Value Unvested shares at January 1, 2023 180,000 $ 14.00 Granted and unvested 489,998 7.29 Vested (461,998 ) 7.50 Unvested shares, June 30, 2023 208,000 $ 14.00 Vested and exercisable as of June 30, 2023 - $ -

LOSS PER SHARE (Tables)

LOSS PER SHARE (Tables)	6 Months Ended
LOSS PER SHARE (Tables)	Jun. 30, 2023
Earnings Per Share [Abstract]
SCHEDULE OF INFORMATION NEEDED TO COMPUTER BASIC AND DILUTED EARNINGS PER SHARE	SCHEDULE OF INFORMATION NEEDED TO COMPUTER BASIC AND DILUTED EARNINGS PER SHARE 2023 2022 2023 2022 For The Three Months For The Six Months 2023 2022 2023 2022 Numerator Net Loss attributable to common stockholders $ (11,700 ) $ (1,469 ) $ (6,808 ) $ (3,767 ) Denominator Weighted average common shares outstanding used to compute net loss per share, basic and diluted 47,418,269 36,616,430 46,263,591 36,579,990 Weighted average common shares outstanding,basic 47,418,269 36,616,430 46,263,591 36,579,990 Net loss per share of common stock, basic and diluted $ (0.25 ) $ (0.04 ) $ (0.15 ) $ (0.10 ) Net loss per share of common stock, basic $ (0.25 ) $ (0.04 ) $ (0.15 ) $ (0.10 )
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 loss per share because their effect was anti-dilutive: SCHEDULE OF POTENTIAL SHARES OF COMMON STOCK EXCLUDED FROM DILUTED NET (LOSS) INCOME PER SHARE June 30, 2023 June 30, 2022 Warrants 23,492,221 - Restricted stock units 208,000 - Options 3,443,099 4,008,139 Weighted average number of common shares-basic 27,143,320 4,008,139

SCHEDULE OF VARIOUS CLASSES OF

SCHEDULE OF VARIOUS CLASSES OF PROPERTY AND EQUIPMENT AND ESTIMATED USEFUL LIVES (Details)	Jun. 30, 2023
Property, Plant and Equipment [Line Items]
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration]	Leasehold Improvements [Member]
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		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Total	$ 19,274	$ 21,622	$ 38,065	$ 39,925
Sales Channel, Directly to Consumer [Member]
Disaggregation of Revenue [Line Items]
Total	5,829	11,850	12,898	24,885
Sales Channel, Through Intermediary [Member]
Disaggregation of Revenue [Line Items]
Total	4,143	2,534	7,111	4,621
Original Equipment Manufacture [Member]
Disaggregation of Revenue [Line Items]
Total	$ 9,302	$ 7,238	$ 18,056	$ 10,419

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023 USD ($) Vendor Customer $ / shares	Jun. 30, 2022 USD ($) Vendor	Jun. 30, 2023 USD ($) Segment Vendor Customer $ / shares	Jun. 30, 2022 USD ($) Vendor	Dec. 31, 2022 USD ($) $ / shares	Mar. 05, 2023 USD ($)
Product Information [Line Items]
Cash and cash equivalents	$ 32,952,000		$ 32,952,000
Working capital			$ 30,592,000
Loan amount						$ 100,000
Period within which payment is due from customers			30 – 90 days
Allowance for doubtful accounts	131,000		$ 131,000		$ 90,000
Depreciation expense	296,000	$ 197,000	593,000	$ 389,000
Customer deposits	152,000		152,000		238,000
Repayment to related party	221,000		221,000		221,000
Revenues			434
Shipping and handling costs	951,000	1,306,000	1,958,000	2,534,000
Warrant obilgation outstanding	329,000		$ 329,000		$ 328,000
Number of vendors \| Customer			2
Advertising expense	$ 683,000	$ 481,000	$ 1,270,000	$ 1,262,000
Common stock, par value \| $ / shares	$ 0.0001		$ 0.0001		$ 0.0001
Unrecognized Tax Benefits	$ 128,000		$ 128,000		$ 128,000
Number of operating segments \| Segment			1
Common Stock [Member]
Product Information [Line Items]
Common stock, par value \| $ / shares	$ 0.0001		$ 0.0001
Accounts Receivable [Member] \| Credit Concentration Risk [Member] \| Customer One [Member]
Product Information [Line Items]
Concentration risk, percentage			22%		18%
Accounts Receivable [Member] \| Credit Concentration Risk [Member] \| Customer Two [Member]
Product Information [Line Items]
Concentration risk, percentage			20%		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		1
Sales [Member] \| Customer Concentration Risk [Member] \| Customer One [Member]
Product Information [Line Items]
Concentration risk, percentage			26%
Revenue Benchmark [Member] \| Customer Concentration Risk [Member] \| One Customer [Member]
Product Information [Line Items]
Concentration risk, percentage	27%	15%		11%
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			2
Accounts Payable [Member] \| Supplier Concentration Risk [Member] \| Vendor One [Member]
Product Information [Line Items]
Concentration risk, percentage			56%
Accounts Payable [Member] \| Supplier Concentration Risk [Member] \| Vendor Two [Member]
Product Information [Line Items]
Concentration risk, percentage			10%
Total Purchases [Member] \| Supplier Concentration Risk [Member]
Product Information [Line Items]
Number of vendors \| Vendor	1	2	1	1
Total Purchases [Member] \| Supplier Concentration Risk [Member] \| Vendor One [Member]
Product Information [Line Items]
Concentration risk, percentage	10%	17%	22%	26%
Total Purchases [Member] \| Supplier Concentration Risk [Member] \| Vendor Two [Member]
Product Information [Line Items]
Concentration risk, percentage		15%
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			90 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		$ 75,000,000

SCHEDULE OF FAIR VALUE, ASSETS

SCHEDULE OF FAIR VALUE, ASSETS AND LIABILITIES (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	$ 14,637	$ 32,831
Fair Value	14,637	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	150	1,990
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	14,487	30,841
Term Loan [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	875	30,841
Fair Value	875	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	875	30,841
Public Offering [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	13,612
Fair Value	13,612
Public Offering [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
Public Offering [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
Public Offering [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	13,612
Private Warrants [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	150	1,990
Fair Value	150	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	150	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	Jun. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw material	$ 38,713	$ 42,586
Finished goods	5,485	7,260
Total inventory	$ 44,198	$ 49,846

SCHEDULE OF TABLE REPRESENTING

SCHEDULE OF TABLE REPRESENTING THE BREAKOUT OF THE OPERATING LEASES (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Operating lease right-of-use assets	$ 3,912	$ 4,513
Short-term operating lease liabilities	1,239	1,188
Long-term operating lease liabilities	2,890	3,541
Total operating lease liabilities	$ 4,129	$ 4,729
Weighted average remaining lease term	3 years 1 month 6 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		Jun. 30, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
December 31, 2023	[1]	$ 704
December 31, 2024		1,435
December 31, 2025		1,435
December 31, 2026		893
Total lease payments		4,467
Less imputed interest		338
Total operating lease liabilities		$ 4,129	$ 4,729

[1]Represents scheduled payments for the remaining six-month period ending December 31, 2023

SCHEDULE OF LEASE COST (Details

SCHEDULE OF LEASE COST (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
SCHEDULE OF LEASE COST (Details) - USD ($) $ in Thousands	Feb. 02, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Loss Contingencies [Line Items]
Operating lease cost	$ 23	$ 395	$ 435	$ 788	$ 646
Cost of Sales [Member]
Loss Contingencies [Line Items]
Operating lease cost		348	355	695	527
Research and Development Expense [Member]
Loss Contingencies [Line Items]
Operating lease cost		23	40	45	59
General and Administrative Expense [Member]
Loss Contingencies [Line Items]
Operating lease cost		12	20	24	30
Selling and Marketing Expense [Member]
Loss Contingencies [Line Items]
Operating lease cost		$ 12	$ 20	$ 24	$ 30

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		6 Months Ended
	Feb. 02, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Loss Contingencies [Line Items]
Monthly base rent	$ 230
Operating lease costs	23	$ 395	$ 435	$ 788	$ 646
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		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		15,000,000
Share-Based Payment Arrangement, Tranche Two [Member]
Loss Contingencies [Line Items]
Earnout shares issuable		12,500,000		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		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 RATIO (Det

SCHEDULE OF LEVERAGE RATIO (Details)	6 Months Ended
SCHEDULE OF LEVERAGE RATIO (Details)	Jun. 30, 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, 2023 - March 31, 2024 [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	Jun. 30, 2023 USD ($)
Debt Disclosure [Abstract]
2023		[1]
2024	938
2025	3,750
2026	80,620
Total	85,308
Less: Estimated interest paid-in-kind	(6,606)
Total debt	78,702
Less: Unamortized debt issuance costs, noncurrent	(56,330)
Total carrying amount	22,372
Less: Current portion of debt	(22,372)
Total long-term debt

[1]Represents scheduled payments for the remaining six-month period ending December 31, 2023

DEBT (Details Narrative)

DEBT (Details Narrative) - USD ($)		3 Months Ended		6 Months Ended
DEBT (Details Narrative) - USD ($)	Oct. 07, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Mar. 05, 2023	Nov. 24, 2021
Debt Instrument [Line Items]
Debt instrument, face amount						$ 100,000
Interest expense		$ 4,113,000	$ 1,228,000	$ 7,928,000	$ 2,491,000
Long term debt		78,702,000		78,702,000
Paid in kind interest				2,510,000
Debt issuance costs		56,330,000		$ 56,330,000
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 $17,500 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			635,000		$ 1,254,000
Amortization of debt issuance costs			$ 584,000	1,197,000
Senior Notes [Member] \| Term Loan Agreement [Member]
Debt Instrument [Line Items]
Debt instrument, face amount		75,000,000		75,000,000
Amortization of debt issuance costs		401,000		620,000
Interest expense		3,651,000		7,147,000
Long term debt		22,372,000		22,372,000
Paid in kind interest				3,702,000
Debt issuance costs		$ 56,330,000		$ 56,330,000

ASSET PURCHASE AGREEMENT (Detai

ASSET PURCHASE AGREEMENT (Details Narrative) - USD ($)		1 Months Ended	3 Months Ended		6 Months Ended
ASSET PURCHASE AGREEMENT (Details Narrative) - USD ($)	Jan. 01, 2022	Apr. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Apr. 26, 2023	Mar. 31, 2023	Dec. 31, 2022
Asset Acquisition [Line Items]
Revenues					$ 434
Repayment to related party			$ 221,000		221,000				$ 221,000
Selling and marketing expense			3,808,000	$ 2,881,000	7,992,000	$ 5,973,000
Related Party [Member]
Asset Acquisition [Line Items]
Repayment to related party			1,000,000		1,000,000		$ 720,000
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			$ 1,909,000		$ 1,909,000				$ 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	6 Months Ended
RELATED PARTY (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2023	Apr. 26, 2023	Mar. 05, 2023	Dec. 31, 2022
Related Party Transaction [Line Items]
Repayment to related party	$ 221			$ 221
Original princial amount			$ 100
Share based compensation	1,389	$ 76
Board of Directors Chairman [Member]
Related Party Transaction [Line Items]
Promissory note			$ 1,000
Chief Operating Officer [Member]
Related Party Transaction [Line Items]
Repayment to officer	100
Related Party [Member]
Related Party Transaction [Line Items]
Repayment to related party	1,000	$ 720
Promissory Note with Related Party \| Chief Financial Officer [Member]
Related Party Transaction [Line Items]
Repayment to officer	$ 469

SCHEDULE OF UNDERWRITER WARRANT

SCHEDULE OF UNDERWRITER WARRANTS (Details)	6 Months Ended
SCHEDULE OF UNDERWRITER WARRANTS (Details)	Jun. 30, 2023 shares
Warrants Outstanding, June 30, 2023	23,492,221
Underwriter Warrants [Member]
Warrants Outstanding, January 1, 2023
Warrants issued	570,250,000
Warrants Outstanding, June 30, 2023	570,250,000

SCHEDULE FAIR VALUE WARRANTS (D

SCHEDULE FAIR VALUE WARRANTS (Details)	Jun. 30, 2023 $ / shares	Jun. 20, 2023 $ / shares	Dec. 31, 2022 $ / shares
Penny Warrants [Member]
Common stock price	$ 1.48		$ 11.09
Fair value	$ 1.48		$ 11.89
Penny Warrants [Member] \| Measurement Input, Share Price [Member]
Warrant measurement input	0.01		0.01
Penny Warrants [Member] \| Measurement Input, Expected Dividend Rate [Member]
Warrant measurement input	0		0
Penny Warrants [Member] \| Measurement Input, Expected Term [Member]
Warrant term	9 years 3 months 7 days		9 years 9 months 7 days
Penny Warrants [Member] \| Measurement Input, Price Volatility [Member]
Warrant measurement input	119		90
Penny Warrants [Member] \| Measurement Input, Risk Free Interest Rate [Member]
Warrant measurement input	3.80		3.90
Offering Warrants [Member]
Common stock price	$ 1.48	$ 1.50
Fair value	$ 1.19	$ 1.21
Offering Warrants [Member] \| Measurement Input, Share Price [Member]
Warrant measurement input	2	2
Offering Warrants [Member] \| Measurement Input, Expected Dividend Rate [Member]
Warrant measurement input	0	0
Offering Warrants [Member] \| Measurement Input, Expected Term [Member]
Warrant term	4 years 11 months 23 days	5 years
Offering Warrants [Member] \| Measurement Input, Price Volatility [Member]
Warrant measurement input	119	118
Offering Warrants [Member] \| Measurement Input, Risk Free Interest Rate [Member]
Warrant measurement input	4.10	4

SCHEDULE OF ROLL FORWARD IN WAR

SCHEDULE OF ROLL FORWARD IN WARRANTS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Warrants Outstanding, June 30, 2023	23,492,221		23,492,221
Change in fair value of warrants	$ 804		$ 19,327
Private Warrants [Member]
Warrants Outstanding, January 1, 2023			4,627,858
Exercise of warrants			(3,126,472)
Warrants Outstanding, June 30, 2023	1,501,386		1,501,386
Public Warrants [Member]
Warrants Outstanding, January 1, 2023			9,487,500
Exercise of warrants			(64,971)
Warrants Outstanding, June 30, 2023	9,422,529		9,422,529
Term Loan Warrants [Member]
Warrants Outstanding, January 1, 2023			2,593,056
Exercise of warrants			(2,000,000)
Warrants Outstanding, June 30, 2023	593,056		593,056
Investor Warrants [Member]
Warrants Outstanding, January 1, 2023
Warrants issued			11,405,000,000
Warrants Outstanding, June 30, 2023	11,405,000,000		11,405,000,000
Warrant [Member]
Balances, January 1, 2023			$ 30,841
Issuance of warrants			13,762
Exercise of warrants			(11,284)
Change in fair value of warrants			(18,832)
Balances, June 30, 2023	$ 14,487		$ 14,487

WARRANTS (Details Narrative)

WARRANTS (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022	Oct. 10, 2022	Jun. 30, 2022
Exercise price of warrants		$ 11.50
Warrants outstanding		23,492,221
Exercise of public warrants	$ 747	$ 747
Exercise of public warrants, shares		64,971
Common Stock, Shares, Issued		58,504,541	43,272,728
Undrwriters warrant [Member]
Common Stock, Shares, Issued		570,250
Underwriters Warrants [Member]
Exercise price of warrants		$ 2.50
[custom:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRightsPercentage-0]		125%
Common Stock [Member]
Exercise of public warrants
Exercise of public warrants, shares	64,971,000
Warrants, shares	73,500,000	10,000,000
Shares Issued, Price Per Share		$ 2
Common Stock [Member] \| Maximum [Member]
Warrants, shares		10,000,000
Common Stock [Member] \| Over-Allotment Option [Member]
Warrants, shares		1,500,000
Common Stock [Member] \| Over-Allotment Option [Member] \| Maximum [Member]
Warrants, shares		1,500,000
Warrant [Member]
Shares Issued, Price Per Share		$ 2
Underwriting Warrants [Member] \| Maximum [Member]
Warrants, shares		1,500,000
Investor Warrants [Member]
Warrants outstanding		11,405,000,000
Warrants, shares		1,405,000
Investor Warrants [Member] \| Maximum [Member]
Warrants, shares		1,405,000
Investor Warrants [Member] \| Over-Allotment Option [Member]
Warrants, shares		1,405,000
Public Warrants [Member]
Exercise price of warrants		$ 0.01
Sale price		$ 16
Warrants outstanding		9,487,500
Private Placement Warrants [Member]
Warrants outstanding		1,501,386	4,627,858
Warrants, shares		1,100,000
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		3,126,472
Penny Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		2,593,056
Penny Warrants [Member] \| Common Stock [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		750,000
10 Warrants [Member]
Sale price		$ 10
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		1,600,000		457,142
10 Warrants [Member] \| Common Stock [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		748,029

SUMMARY OF RESERVED SHARES OF C

SUMMARY OF RESERVED SHARES OF COMMON STOCK FOR ISSUANCE (Details) - shares		Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021
Equity [Abstract]
Options issued and outstanding	[1]	3,443,099	3,642,958	4,008,139	3,690,955
Common stock outstanding		58,504,541	43,272,728	36,749,738
Warrants outstanding		23,492,221
Earnout shares		40,000,000
Shares available for future issuance		4,434,916		622,491
Total		129,874,777		41,380,368

[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			6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Common stock, shares authorized	170,000,000			170,000,000		170,000,000
Common stock, par value	$ 0.0001			$ 0.0001		$ 0.0001
Common stock, shares issued	58,504,541			58,504,541		43,272,728
Common stock, shares outstanding	58,504,541		36,749,738	58,504,541	36,749,738	43,272,728
Proceeds from issuance of common stock				$ 22,810
Excersie price	$ 11.50			$ 11.50
Expiration date				Jun. 20, 2028
Related costs				$ 2,074
Adjustment to additional paid in capital warrant issued				1,169
General and administrative expense	$ 7,614		$ 3,816	17,109	$ 7,442
Fair value liability	$ 13,762			$ 13,762
Common Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Common stock, par value	$ 0.0001			$ 0.0001
Shares new issues		73,500,000		10,000,000
Share issued price share	2			$ 2
Common Stock [Member] \| Over-Allotment Option [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Shares new issues				1,500,000
Offering Warrants [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Excersie price	2			$ 2
Underwriters Warrants [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Excersie price	2.50			$ 2.50
Investor Warrants [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Shares new issues				1,405,000
Investor Warrants [Member] \| Over-Allotment Option [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Shares new issues				1,405,000
Warrant [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Share issued price share	$ 2			$ 2
General and administrative expense				$ 905
Maximum [Member] \| Common Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Shares new issues				10,000,000
Maximum [Member] \| Common Stock [Member] \| Over-Allotment Option [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Shares new issues				1,500,000
Maximum [Member] \| Underwriting Warrants [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Shares new issues				1,500,000
Maximum [Member] \| Investor Warrants [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Shares new issues				1,405,000
Purchase Agreement [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Shares new issues				98,500
Proceeds from issuance of common stock				$ 671
Purchase Agreement [Member] \| Maximum [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Aggregated purchase price				$ 150,000

SCHEDULE OF STOCK BASED COMPENS

SCHEDULE OF STOCK BASED COMPENSATION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		18 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total	$ 954	$ 431	$ 5,441	$ 719	$ 719
Cost of Sales [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total	39	46	75		143
Research And Development [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total	20	134	49		171
Selling and Marketing Expense [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total	115	132	971		192
General and Administrative Expense [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total	$ 780	$ 119	$ 4,346		$ 213

SCHEDULE OF OPTION ACTIVITY AND

SCHEDULE OF OPTION ACTIVITY AND RELATED INFORMATION (Details) - USD ($) $ / shares in Units, $ in Thousands		6 Months Ended
		Jun. 30, 2023	Jun. 30, 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	602,275
Weighted- Average Exercise Price Options granted		$ 7.50	$ 4.08
Weighted- Average Grant Date Fair Value, Options granted		$ 3.82	$ 1.81
Aggregate Intrinsic value Options granted		$ 632
Number of Options forfeited	[1]	(238,345)	(30,468)
Weighted- Average Exercise Price Options forfeited		$ 3.53	$ 2.93
Weighted- Average Grant Date Fair Value, Options forfeited		$ 1.62	$ 2.32
Aggregate Intrinsic value Options forfeited		$ 369
Number of Options exercised	[1]	(105,121)	(254,623)
Weighted- Average Exercise Price Options exercised			$ 0.94
Weighted- Average Grant Date Fair Value, Options exercised		$ 5.91	$ 2.39
Aggregate Intrinsic value Options exercised		$ 298
Number of Options, Balance at the end	[1]	3,443,099	4,008,139
Weighted- Average Exercise Price Balances at the end		$ 2.11	$ 2.36
Weighted- Average Grant Date Fair Value,Balances at the end		$ 1.27	$ 1.72
Weighted- Average Remaining Contractual Life (in years)		6 years 1 month 28 days	8 years 5 months 4 days
Aggregate Intrinsic value Balances at the end		$ 1,520	$ 5,845
Weighted- Average Exercise Price Options Excercised		$ 3.07
Number of Options, Vested and Exercisable	[1]	2,164,874
Weighted- Average Exercise Price Vested and Exercisable		$ 1.55
Weighted- Average Remaining Contractual Life (in years)		4 years 10 months 20 days
Aggregate Intrinsic value Vested and Exercisable		$ 1,389
Number of Options, Vested and expected to vest	[1]	3,443,099
Weighted- Average Exercise Price Vested and expected to vest		$ 2.11
Weighted- Average Remaining Contractual Life (in years)		6 years 1 month 28 days
Aggregate Intrinsic value Vested and expected to vest		$ 1,520

[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)	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Stock option exchange ratio	1.182

SCHEDULE OF RESTRICTED STOCK UN

SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2023	Apr. 26, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vested and exercisable as of June 30, 2023	$ 1,389	$ 76
Restricted Stock Units (RSUs) [Member]
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	$ 14
Number of shares granted and unvested	489,998
Weighted average fair market value granted and unvested	$ 7.29
Number of shares vested	(461,998)
Weighted average fair market value vested	$ 7.50
Number of shares , ending balance	208,000
Weighted average fair market value , beginning balance	$ 14
Number of shares ,vested
Vested and exercisable as of June 30, 2023

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details Narrative) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
	Oct. 07, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Feb. 10, 2023	Dec. 31, 2022
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		4,434,916		4,434,916
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-Based Payment Arrangement, Expense		$ 954	$ 431	$ 5,441	$ 719
Restricted stock units, Unvested	180,000	208,000		208,000		461,998	180,000
Restricted stock units, value	$ 2,520			$ 3,464
Restricted Stock Units Unvested [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Restricted stock units, Unvested		28,000		28,000
Restricted stock units, value				$ 105
Restricted Stock Units Vested [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Restricted stock units, value				$ 7

SCHEDULE OF INFORMATION NEEDED

SCHEDULE OF INFORMATION NEEDED TO COMPUTER BASIC AND DILUTED EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share [Abstract]
Net Loss attributable to common stockholders	$ (11,700)	$ (1,469)	$ (6,808)	$ (3,767)
Weighted average common shares outstanding,basic	47,418,269	36,616,430	46,263,591	36,579,990
Weighted average common shares outstanding, diluted	47,418,269	36,616,430	46,263,591	36,579,990
Net loss per share of common stock, basic	$ (0.25)	$ (0.04)	$ (0.15)	$ (0.10)
Net loss per share of common stock, diluted	$ (0.25)	$ (0.04)	$ (0.15)	$ (0.10)

SCHEDULE OF POTENTIAL SHARES OF

SCHEDULE OF POTENTIAL SHARES OF COMMON STOCK EXCLUDED FROM DILUTED NET (LOSS) INCOME PER SHARE (Details) - shares	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Purchase an aggregate shares	27,143,320	4,008,139
Share-Based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Purchase an aggregate shares	3,443,099	4,008,139
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Purchase an aggregate shares	208,000
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Purchase an aggregate shares	23,492,221

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
INCOME TAXES (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Income tax expense (benefit)		$ (287)		$ (814)

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($)				6 Months Ended
SUBSEQUENT EVENTS (Details Narrative) - USD ($)	Aug. 08, 2023	Jul. 06, 2023	Jul. 01, 2023	Jun. 30, 2023	Jun. 30, 2022
Subsequent Event [Line Items]
Warrant exercises net				$ 747,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Warrant exercises	273,100
Warrant exercises net	$ 546
Repayments of Related Party Debt			$ 5,275,000
Maturity date		Jul. 06, 2024
Subsequent Event [Member] \| Wells Fargo Commercial Banking [Member]
Subsequent Event [Line Items]
Time deposits		$ 315,000
Debt instrument interest rate effective percentage		2%