Chardan NexTech Acquisition 2 Corp. (CNTQ): history, ownership, mission, how it works & makes money

From its 2020 founding as a special purpose acquisition company by Chardan Capital Markets to an upsized August 2021 IPO that raised $110 million by selling 11,000,000 units at $10.00 each, Chardan NexTech Acquisition 2 Corp. (CNTQ) set out to target disruptive energy-tech opportunities and, after leadership from Chairman Kerry Propper, CEO Jonas Grossman and CFO Alex Weil and underwriting by Chardan and B. Riley, steered a business combination approved by over 99.9% of shareholders in October 2022 to merge with Dragonfly Energy (now trading as DFLI), creating a public company focused on replacing lead-acid batteries with non-toxic deep-cycle lithium-ion systems; Dragonfly designs chemistry-agnostic batteries via a dry electrode process, sells direct-to-consumer under Battle Born Batteries and to OEMs (e.g., Keystone RV, Midwest Automotive), bundles chargers/inverters/BMS accessories, pursues all-solid-state cell R&D, monetizes through unit sales and accessory/PIPE partnerships, and sits in a market with a total addressable value projected at $85 billion by 2025, with the merged entity continuing operations into December 2025.

Chardan NexTech Acquisition 2 Corp. (CNTQ): Intro

• Founded in 2020 as a special purpose acquisition company (SPAC) sponsored and managed by Chardan Capital Markets to identify and combine with a disruptive technology business.
• August 2021: Completed an upsized IPO, raising $110,000,000 by issuing 11,000,000 units at $10.00 per unit; each unit consisted of one share of common stock and three‑quarters of a redeemable warrant.
• Deal leadership: Chairman Kerry Propper, CEO Jonas Grossman, CFO Alex Weil; Chardan served as sole book‑running manager and B. Riley Securities, Inc. acted as qualified independent underwriter.
• October 2022: Shareholders approved a business combination with Dragonfly Energy Corp., a supplier of deep‑cycle lithium‑ion batteries; merger closed in late 2022 and Dragonfly began trading on Nasdaq under ticker DFLI.
• As of December 2025, Dragonfly Energy remains a standalone, publicly traded company focused on energy storage solutions.

• IPO proceeds: $110.0M placed into SPAC trust (subject to redemptions) to fund target acquisition and provide cash for combined entity.
• Unit composition at IPO: 11,000,000 units → 11,000,000 common shares and 8,250,000 warrants (11,000,000 × 0.75).
• Promote / sponsor stake typical of sponsor‑backed SPACs (founder warrants and sponsor rollover) - sponsor economics realized through founder shares and warrant ownership at closing of the business combination.

• SPAC mission: Provide a fast, sponsor‑led path to public markets for a high‑growth technology company by combining Chardan's capital‑markets expertise with an operating partner.
• Post‑merger mission (Dragonfly Energy): Develop, manufacture and commercialize deep‑cycle lithium‑ion battery systems and energy storage solutions for recreational, automotive, off‑grid and commercial applications; emphasize safety, cycle life and energy density improvements.
• Strategic fit: CNTQ targeted a capital‑intensive, tech‑led energy storage business where public capital could accelerate product development, scale manufacturing and expand distribution.

• Capital raise via IPO placed in a trust earning interest; trust funds available for a qualifying business combination if shareholder redemption rates permit.
• Sponsor sources target company, negotiates merger terms and proposes combination to shareholders, often alongside PIPE financing to provide additional growth capital.
• Upon shareholder approval and closing, trust cash transfers to the combined company less redemptions; target becomes public without a traditional IPO roadshow.
• For CNTQ: the target (Dragonfly) received transaction proceeds and public listing benefits, while SPAC investors received shares and warrants of the combined public entity (DFLI).

• Product sales: Revenue from lithium‑ion battery modules, complete battery packs and packaged energy storage systems sold to OEMs, dealers, and end customers in RV, marine, off‑grid, solar‑plus‑storage and industrial markets.
• Service and aftermarket: Installation, warranty extension, battery management system (BMS) upgrades, and replacement module sales generate recurring revenue and higher lifetime customer value.
• Channel and distribution: Sales via dealers, OEM partnerships and e‑commerce increase market reach and margins through recurring order flow.
• Technology licensing and partnerships: Potential licensing of cell chemistry, BMS or pack designs; strategic manufacturing or supply agreements to lower cost of goods sold (COGS) and accelerate roll‑out.
• Scale‑driven margin improvement: Manufacturing scale, vertical integration and supply‑chain optimization reduce per‑unit costs and expand gross margins over time.

• Board composition typically updated at closing to include sponsor representatives, independent directors and target company executives to balance capital‑markets experience with operating expertise.
• Management continuity: Dragonfly's executive team assumed operating control post‑close to execute product roadmap, manufacturing scale‑up and commercial expansion.

• Redemption risk: High shareholder redemptions reduce trust cash available to the combined company and can necessitate larger PIPEs or sponsor rollovers.
• Execution risk: Manufacturing scale, battery raw‑material costs, supply‑chain constraints and product safety certification can materially affect growth and margins.
• Market risk: Battery and energy‑storage markets are competitive and cyclical; pricing pressure and rapid technology change are potential headwinds.

Chardan NexTech Acquisition 2 Corp. (CNTQ): History

• Prior to the merger: CNTQ was a publicly traded SPAC on Nasdaq (ticker: CNTQ).
• Merger outcome: Dragonfly Energy is the surviving entity; shares now trade under DFLI.
• Shareholder vote: the merger was approved by over 99.9% of CNTQ shareholders.
• Post-merger ownership: combination of former CNTQ shareholders, Dragonfly legacy shareholders, and new PIPE investors.
• Governance: board and executive team comprised of representatives from both CNTQ and Dragonfly Energy to leverage combined expertise.

• How the transition affected holders: CNTQ public shareholders received shares of the combined public company (Dragonfly Energy), shifting their exposure from a blank‑check SPAC vehicle to an operating company focused on energy/storage solutions.
• Financing components: the final capitalization includes equity issued to former CNTQ public investors, equity retained by Dragonfly founders, and capital from PIPE investors who subscribed concurrent with the business combination.

Chardan NexTech Acquisition 2 Corp. (CNTQ): Ownership Structure

• Mission and values (as applied to the combined public company):
• Provide innovative, non-toxic deep-cycle lithium-ion energy storage to replace lead-acid batteries.
• Prioritize R&D toward advanced cell chemistries and solid‑state cell development.
• Minimize environmental impact relative to traditional battery technologies.
• Deliver high-quality products for RV, marine, and off‑grid applications with emphasis on safety, efficiency, and cost-effectiveness.
• Commit to customer satisfaction and continuous technological improvement.

• Access to SPAC trust funds and PIPE capital for growth, manufacturing scale-up, and R&D (solid‑state initiatives).
• Sponsor and founder roll-ins aligned management incentives with long-term equity value.
• Public listing provided market liquidity to support follow-on raises and strategic M&A.

• Public investors: upside participation in equity appreciation post-merger; downside protection via redemption right (return of pro-rata trust value, typically ~$10/share less fees).
• Sponsors: value created from promote and retained rollover equity; realized gains if share price rises above implicit post-combination valuation.
• Company (Dragonfly Energy): proceeds from trust + PIPE used to fund CAPEX, inventory, R&D (including solid‑state cell development) and working capital to drive revenue growth across RV, marine, and off‑grid verticals.

Chardan NexTech Acquisition 2 Corp. (CNTQ): Mission and Values

• Design & engineering: CNTQ's operating business leverages Dragonfly Energy's in-house engineering to develop prismatic and pouch-format lithium-ion cells integrated with proprietary battery management systems (BMS) that prioritize safety, cell balancing, and thermal management.
• Dry electrode manufacturing: The company employs a dry electrode process - a low-solvent, roll-to-roll approach - that enables faster throughput, lower manufacturing emissions, and chemistry-agnostic cell construction suitable for lithium iron phosphate (LFP) today and next-gen chemistries tomorrow.
• Modular product architecture: Battery modules are offered in 12V, 24V and 48V platforms that can be paralleled or stacked to scale kWh capacity across applications from off-grid RVs to commercial energy storage systems.
• System integration: Battery packs are combined with matched inverters, chargers, battery monitors and controllers to deliver turnkey energy solutions for OEM partners and end customers.
• Solid-state development: Ongoing R&D targets all-solid-state cell designs to improve volumetric energy density, intrinsic safety, cycle life (target >3,000 cycles at 80% DoD) and operational temperature window.

• Production process: Dry-electrode roll-to-roll lines reduce solvent use and allow rapid switching between chemistries; typical line throughput targets several MWh per month per line at scale.
• Cell performance targets: Commercial LFP packs rated for 3,000-6,000 cycles at 80% depth of discharge, nominal energy density in packaged modules ~120-180 Wh/kg depending on format.
• Quality & safety: Integrated BMS with multi-tier protection (cell-level monitoring, thermal cutoff, over-/under-voltage, and current interrupt) aims to meet UL 1973 / IEC 62619 certification regimes for stationary and motive applications.

• Product sales: Direct-to-consumer (Battle Born Batteries) and OEM supply (Dragonfly Energy) - primary revenue drivers via unit sales of battery packs and systems.
• Systems & accessories: Upsell of matched inverters, chargers, monitors, and controllers increases average order value and recurring accessory revenue.
• Solutions & services: Integration, installation partnerships, and extended warranty/maintenance contracts provide higher-margin service revenue streams.
• Licensing & IP: Potential licensing of dry-electrode processes, BMS software and future solid-state cell IP to manufacturers and strategic partners.
• R&D funding / grants: Non-dilutive grants and co-development arrangements can subsidize solid-state development and scale-up capex.

• Higher-margin software & BMS licensing as installations scale and fleet telematics expand.
• Economies of scale from ramping dry-electrode lines and vertical integration of module assembly to compress cost per kWh.
• Service-based margins from installer networks, warranties and asset management offerings for commercial customers.

• Direct-to-consumer: Battle Born brand channels (e-commerce, specialty retailers) focused on RV, marine and off-grid consumer segments.
• OEM channels: Dragonfly Energy brand targets vehicle manufacturers, appliance OEMs and telco/energy integrators through OEM contracts and co-development.
• Distribution & integrator network: Authorized installers, system integrators and distributors for commercial deployments and residential installs.

• Scale-up of dry-electrode manufacturing lines and associated cost-per-kWh declines.
• Commercial validation of all-solid-state cells (energy density and cycle-life improvements vs current LFP modules).
• Expansion of OEM contracts and multi-megawatt-hour commercial projects to anchor recurring revenue.

Chardan NexTech Acquisition 2 Corp. (CNTQ): How It Works

• Primary product lines: lithium‑ion battery packs for RV, marine, off‑grid, and light‑vehicle applications; branded consumer packs and system-level solutions (chargers, inverters).
• Go‑to‑market channels: direct‑to‑consumer (branded retail), OEM partnerships (integrated supply to vehicle and equipment manufacturers), and commercial/grid storage projects.
• Key channel partners named in public disclosures include OEMs such as Keystone RV and Midwest Automotive, which integrate battery systems into finished products.
• Branding: consumer sales primarily flow through a consumer brand (e.g., Battle Born Batteries) targeting RV, marine and off‑grid end users.
• Adjacencies: systems accessories (chargers, inverters), installation services, and aftermarket support create recurring and accessory revenue streams.
• Technology/monetization: proprietary cell management, battery chemistry tuning and system software allow premium pricing, licensing opportunities and product differentiation.

• Unit sales: margins on battery modules and complete systems sold to OEMs and end customers.
• Accessory and systems revenue: chargers, inverters, BMS upgrades and installation kits sold alongside batteries.
• OEM contracts: multi‑year supply agreements provide predictable volume and enable scale.
• Commercial projects: larger contracts for grid‑edge and storage deployments for commercial, industrial and utilities customers.
• R&D value capture: proprietary IP permits premium pricing, extended warranties and software/service offerings (BMS firmware updates, monitoring subscriptions).

• Economies of scale in cell procurement and pack assembly reduce COGS as volumes grow.
• Long‑term OEM contracts smooth revenue visibility and enable production planning.
• R&D investment on proprietary chemistries and BMS increases product performance and justifies premium gross margins.
• Expansion into grid and commercial energy storage offers higher‑ticket projects but requires CAPEX and longer deployment timelines.

• Deepening OEM relationships to convert one‑off integrations into platform supply agreements.
• Growing direct digital sales and dealer networks for the consumer brand to increase margin capture.
• Leveraging IP for licensing and software subscription revenue to boost recurring revenue mix.
• Targeting commercial and utility storage projects to diversify beyond the seasonal RV/marine end markets.

Chardan NexTech Acquisition 2 Corp. (CNTQ): How It Makes Money

• Founded as a blank-check company sponsored by Chardan Capital Markets to seek technology-sector targets; structured as a SPAC with public units priced at $10 per unit at IPO.
• Ownership initially split between public unit holders (trust assets) and sponsor shares (promote), with sponsors typically holding a 20% equity promote after a qualifying merger.
• Management and board composed of Chardan-appointed executives and industry advisors tasked with deal sourcing, due diligence and negotiation.

• To identify, acquire and combine with high-growth technology companies that can benefit from public-market access and strategic capital to scale operations.

• Pre-merger: interest income on the IPO trust (cash held in trust typically invested in short-term Treasury or cash equivalents) and transaction fees paid by target companies for advisory or structuring services.
• Post-merger (if a business combination completes): equity upside from ownership in the combined operating company, potential dividend streams, and fees (e.g., management or sponsor fees) negotiated as part of the deal.
• Monetization events include share sales in the public market, secondary offerings, and realization through M&A or buyouts of the combined company.

• CNTQ's market relevance depends on the success of its target selection; the vehicle aims at technology and high-growth sectors where public valuations can expand rapidly.
• Relevant sector example - energy storage - has a total addressable market (TAM) projected to reach $85 billion by 2025, indicating large-scale opportunities for targets focused on battery, power management or cleantech solutions.
• Targets with innovations such as solid-state batteries, OEM partnerships, and direct-to-consumer channels can capture migration away from legacy technologies and benefit from sustainability tailwinds.
• Ongoing R&D, strategic OEM alliances and sustainability positioning improve long-term growth prospects and exit valuation potential for CNTQ's combined company.