Dragonfly Energy SPAC Presentation Deck
Risk Considerations (1/5)
The risks presented below are certain of the general risks related to the business of the Company and the business combination, and such list is not exhaustive. You should
carefully consider these risks and uncertainties, and should carry out your own diligence and consult with your own financial, tax and legal advisors concerning the risks and
suitability of an investment in this offering before making an investment decision. The risks presented below are qualified in their entirety by disclosures contained in future
documents filed or furnished by CNTQ with the United States Securities and Exchange Commission ("SEC"), including the documents filed or furnished in connection with the
proposed transactions between the Company and CNTQ. The risks presented in such filings will be consistent with those that would be required for a public company in their SEC
filings, including with respect to the business and securities of the Company and CNTQ and the proposed transactions between the Company and CNTQ, and may differ
significantly from, and be more extensive than, those presented below.
Unless the context otherwise requires, all references below to the "Company," "Dragonfly," "we," "us" or "our" refer to the bu ness of Dragonfly Energy Corp. prior to the
consummation of the Transaction, and New Dragonfly and its subsidiaries, including Dragonfly Energy Corp., following the consummation of the Transaction.
Risks Related to Dragonfly's Business and New Dragonfly Following the Business Combination
Risks Related to Dragonfly's Existing Lithium-Ion Battery Operations
Our business and future growth depends on the needs and success of our customers.
We may not be able to engage target customers successfully and to convert these customers into meaningful orders in the future.
We operate in a competitive industry. We expect that the level of competition will increase and the nature of our competitors will change as we develop new LFP battery
products for, and enter into, new markets, and as the competitive landscape evolves. These competitive and other factors could result in lost potential sales and lower average
selling prices and profitability for our products.
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dragonfly
ENERGY
We may not succeed in our medium and long-term strategy of entering into new end markets for LFP batteries and our success depends, in part, on our ability to successfully
develop and manufacture new products for, and acquire customers in, these new markets and successfully grow our operations and production capabilities (including, in time,
our ability to manufacture solid state cells in-house).
We currently rely on two suppliers to provide our LFP cells and a single supplier for the manufacture of our battery management system. Any disruption in the operations of
these key suppliers could adversely affect our business and results of operations.
We may not be able to accurately estimate future demand for our LFP batteries, and our failure to accurately predict our production requirements could result in additional
costs or delays.
We are currently, and will likely continue to be, dependent on a single manufacturing facility. If our facility becomes inoperable for any reason, or our automation and expansion
plans do not yield the desired effects, our ability to produce our products could be negatively impacted.
Lithium-ion battery cells have been observed to catch fire or release smoke and flame, which may have a negative impact on our reputation and business.
We may be subject to product liability claims, which could harm our financial condition and liquidity if we are not able to successfully defend or insure against such claims.
We currently rely on software and hardware that is highly complex and technical, and we expect that our reliance will increase in the future with the introduction of future
products. If we are unable to manage the risks inherent in these complex technologies, or if we are unable to address or mitigate technical limitations in our systems, our
business could be adversely affected.
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