Dragonfly Energy Settlement Eliminates Series A Preferred Stock and Related Obligations

Dragonfly Energy Holdings Corp.

• Dragonfly Energy entered a Settlement and Release Agreement on July 20, 2025 with the holder of its Series A Convertible Preferred Stock.
• Company will issue 2,100,000 shares of common stock in exchange for surrender of all outstanding Series A Preferred Stock.
• Obligations under the Securities Purchase Agreement and related agreements are terminated; both parties grant full releases.
• Shares are issued under Section 3(a)(9) exemption from registration under the Securities Act.
• Press release issued July 21, 2025 announced the transaction and its positive impact on capital structure and financial flexibility.