8-K: Dragonfly Energy Settles Patent Litigation and Launches New Power Pack for Long-Haul Trucks

Dragonfly Energy resolves a patent dispute with LithiumHub for $2.5 million and introduces the Battle Born DualFlow Power Pack, designed to cut fuel costs and extend battery life in long-haul trucks.

Summary

• Dragonfly Energy Holdings Corp. has entered into a settlement agreement with LithiumHub, resolving a patent litigation case.
• Dragonfly Energy will pay LithiumHub $2.5 million in total, with approximately $0.6 million due in 2025 and $1.9 million in 2026, in exchange for a non-exclusive license to LithiumHub's patent rights.
• The settlement includes no admission of infringement by Dragonfly Energy.
• Dragonfly Energy unveiled the Battle Born DualFlow Power Pack, a lithium power system designed for long-haul trucks, at TMC's 2025 Annual Meeting & Transportation Technology Exhibition.
• The DualFlow Power Pack aims to eliminate idle time, reduce strain on starter batteries, and provide dedicated power for hotel loads.
• The company believes the DualFlow Power Pack offers a quick ROI (Return on Investment) of well under a year, leading to significant savings in fuel costs, battery replacements, and maintenance.
• The DualFlow Power Pack is available for purchase and fleets have already begun integrating it into their operations.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive due to the resolution of a legal issue and the launch of a new product with potential cost savings for customers. However, the settlement payment is a negative factor.

Positives

• Settlement of the patent litigation removes a potential legal overhang.
• The Battle Born DualFlow Power Pack offers potential cost savings and efficiency improvements for long-haul trucking fleets.
• The DualFlow Power Pack is designed for easy installation and universal compatibility.
• The 10-year warranty on the DualFlow Power Pack provides assurance of durability and reliability.

Negatives

• Dragonfly Energy is required to pay $2.5 million to LithiumHub as part of the settlement agreement.

Risks

• The forward-looking statements are subject to risks and uncertainties detailed in the company's filings with the SEC.
• Actual results may differ materially from those projected in the forward-looking statements.

Future Outlook

The company anticipates that the Battle Born DualFlow Power Pack will provide significant real-world savings in fuel costs, battery replacements, and maintenance for fleets.

Management Comments

• Wade Seaburg, chief commercial officer for Dragonfly Energy, stated that the DualFlow Power Pack is a form of hybrid electrification that delivers real savings and efficiency.
• Wade Seaburg believes the system helps fleets cut fuel costs, extend battery life, and reduce emissions without overhauling their existing infrastructure.

Industry Context

The announcement reflects the increasing focus on sustainable and cost-effective solutions in the trucking industry, with companies seeking ways to reduce fuel consumption and emissions.

Comparison to Industry Standards

• The Battle Born DualFlow Power Pack competes with other auxiliary power units (APUs) and idle reduction technologies in the trucking industry.
• Companies like Thermo King and Carrier offer diesel-powered APUs, while others provide electric APUs or battery-based systems.
• The DualFlow Power Pack's lithium-ion technology and focus on easy installation and quick ROI differentiate it from some competitors.
• The 10-year warranty is a strong selling point compared to standard warranties in the industry.

Legal Proceedings

• Dragonfly Energy settled a patent litigation with LithiumHub, LLC, LithiumHub Technologies, LLC and Martin Koebler.

Stakeholder Impact

• Shareholders: Resolution of the patent litigation removes uncertainty.
• Customers (Trucking Fleets): The DualFlow Power Pack offers potential cost savings and efficiency improvements.
• Employees: The new product launch could lead to increased sales and growth opportunities.

Next Steps

• Dragonfly Energy will continue to integrate the DualFlow Power Pack into major fleets.
• Dragonfly Energy will continue to develop and deploy its proprietary, nonflammable, all-solid-state battery cells.

Key Dates