Damon Provides Operational Business Update and Reports FY25 Q3 Results

VANCOUVER, BC, May 19, 2025 /PRNewswire/ - Damon Inc. (Nasdaq: DMN) ("Damon" or the "Company"), a designer and developer of electric motorcycles and other personal mobility products that seek to empower the personal mobility sector through innovation, data intelligence and strategic collaborations, is providing this operational business update and overview of its financial results for the quarter ended March 31, 2025.

Since the start of Q3, Damon has made significant strides in improving its financial position, diversifying its business model, and accelerating its expected path to revenue generation.

FY25 Q3 Accomplishments and Recent Highlights

• Completed a $16.5 million underwritten public offering, in addition to the $10 million prepaid equity line of credit facility established in December 2024
  
  
• Terminated a $13 million debt facility
  
  
• Redefined company mission to focus on four core potential revenue verticals: Data Intelligence, Personal Mobility, Licensing and Engineering Services, and Special Projects
  
  
• Broadened scope of potential product offerings beyond motorcycles to include other personal mobility products and technology solutions with licensing opportunities and data intelligence applications
  
  
• Minimized burn rate through strategic headcount reductions and expenditure management
  
  
• Signed an agreement with renowned Italian engineering firm Engines Engineering to develop the HyperSport Race Motorcycle, advancing the vehicle's development through defined engineering milestones and prototyping phases
  
  
• Accelerated expected timeline to initial HyperSport Race Motorcycle product delivery within 12 months, while reducing expected development costs to under $10 million

Listing Status

The Nasdaq staff has informed the Company that its common shares will resume trading on Nasdaq for one trading day, on May 19, 2025, prior to being delisted as of the following trading day.  The Company expects to begin trading on the OTC Pink Current Market effective May 20, 2025.  The Company is seeking to have its shares traded on the OTCQB Venture Market maintained by OTC Markets Group (the "OTCQB"), though no assurance can be provided that the Company will be able to satisfy the criteria for trading on the OTCQB or that the staff of OTC Markets Group will approve the Company's application to trade on the OTCQB.

Commentary from Dominique Kwong, CEO of Damon

"Since the start of the quarter and calendar 2025, we believe we have made tremendous progress in strengthening Damon's financial foundation while diversifying our business model to open up new potential high-margin revenue streams. We are not just a motorcycle company anymore. We are now a company committed to powering sustainability through personal mobility products and intelligent data solutions. With what we believe is an expanded market opportunity and accelerated path to revenue, Damon is positioned to capitalize on the great potential at the intersection of electrification, connectivity and data intelligence.

Damon's proprietary safety systems and electrification technology, backed by over 38 patents and patents pending, continue to be core differentiators in the market. The company's new Damon IO technology stack enables real-time data collection and analysis, which we believe will provide valuable insights and increase revenue potential.

While recent events have presented a speed bump on our journey, we remain fully committed to our strategic roadmap and growth trajectory. We view this as a temporary challenge that we are actively working to overcome, with the goal of emerging stronger and more resilient. Our focus remains on operational excellence, product innovation, and transparent communication with our stakeholders as we continue executing on our vision.

Moving forward, we're implementing an asset-light business model through strategic partnerships, bolstered by our recent financings. This approach optimizes our operational efficiency while advancing our mission in mobility innovation and data intelligence. We believe combining our diversified potential revenue streams and strategic focus on sustainable personal mobility solutions positions us strongly for long-term value creation."

Financial Results for FY25 Q3 (ended March 31, 2025)

Financial Performance:

• Net loss in the quarter was approximately $2.4 million, or $0.11 per diluted share, compared to a net loss of $25.6 million, or $2.11 per diluted share, in the same period last year.

Cash, Financing, Liabilities:

• Total cash was $7.56 million at March 31, 2025 compared to $396k year ended June 30, 2024.
  
  
• Total Liabilities reduced to $29.1 million at March 31, 2025 compared to $52.2 million year ended June 30, 2024.
  
  
• Stockholders' Deficit reduced to $21.3 million at March 31, 2024 compared to $50.4 million year ended June 30, 2024.
  
  
• Financing activities during the quarter ended in the amount of $21.8 million compared to $8.7 million in the same period last year.

Operating Performance:

• Operating expenses in the quarter were approximately $29.0 million, compared to $9.5 million in the same period last year, which was largely due to a Goodwill Impairment.
  
  
• General and administrative expenses in the quarter were approximately $6.7 million compared to $4.9 million in the same period last year.

About Damon

Damon Inc. is a designer and developer of personal mobility products and technology solutions that integrate AI-driven safety systems, smart electrification, and user-driven design to revolutionize sustainable transportation. Operating across four potential revenue verticals - Data Intelligence & Services, Engineering Services, Personal Mobility Products, and Special Projects – Damon believes it is positioned to capture a significant share of the $40B global electric two-wheeler market by 2030¹. The company distinguishes itself through its integrated ecosystem approach, combining advanced data analytics, engineering expertise, and strategic partnerships with OEMs and Tier 1 suppliers. Damon emphasizes accessible mobility solutions while leveraging its proprietary AI-driven safety systems and intelligent energy management technology to deliver superior performance and operational efficiency in the urban and business mobility space. For more information, please visit damon.com.

FORWARD LOOKING STATEMENTS

This press release contains forward-looking information or forward-looking statements under applicable Canadian and U.S. securities laws (collectively, "forward-looking statements") that reflect current expectations and projections of Damon Inc. ("Damon") about its future development. When used in this press release, forward-looking statements can be identified by the use of words such as "may," or by such words as "will," "intend," "believe," "estimate," "consider," "expect," "anticipate," and "objective" and similar expressions or variations of such words. Forward-looking statements in this press release include, but are not limited to, statements relating to our strategic initiatives, revenue expansion plans, business model evolution, and expected efficiency improvements and growth. Forward-looking statements are, by their nature, not guarantees of Damon's future operational or financial performance and are subject to risks and uncertainties and other factors that could cause Damon's actual results, performance, prospects, or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. No representation or warranty is intended with respect to anticipated future results, or that estimates, or projections will be sustained.

In developing the forward-looking statements in this press release, we have applied several material assumptions, including the general business and economic conditions of the industries and countries in which Damon operates, and general market conditions. Many risks, uncertainties, and other factors could cause the actual results of Damon to differ materially from the results, performance, achievements, or developments expressed or implied by such forward-looking statements. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to, our history of losses, our ability to implement our growth strategy, generate revenue and achieve profitability, our limited operating history with recent acquisitions, our ability to obtain adequate financing as needed, our ability to continue as a going concern, our status as a foreign private issuer, impact of our expected delisting from Nasdaq, our ability to trade on an over-the-counter market maintained by OTC Markets Group Inc., customer demand for or acceptance of our products and services, the impact of competitive or alternative products, technologies, and pricing, emerging competition and rapidly advancing technology that may outpace our own, our ability to manufacture or distribute products and secure strategic supply and manufacturing arrangements, our ability to protect our intellectual property, impact of any changes in existing or future regulatory and tax regimes applying to our business, our ability to successfully consummate strategic transactions and integrate companies or technologies we acquire, our ability to attract and retain management and employees with specialized knowledge and technical skills, our ability to develop and maintain effective internal controls, general economic conditions and events and the impact they may have on us and our customers, including but not limited to escalating tariff and non-tariff trade measures imposed by the United States and other countries, increases in inflation rates and rates of interest, supply chain challenges, increased costs for materials and labor, cybersecurity threats, and conflicts such as those in Russia/Ukraine and Israel/Hamas, our success at managing the risks involved in the foregoing items, and other risk factors discussed in our periodic and current reports and registration statements filed with the U.S. Securities and Exchange Commission and the British Columbia Securities Commission.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of the press release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, events may differ materially from current expectations. Damon disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required pursuant to applicable securities law.  All forward-looking statements contained in the press release are expressly qualified in their entirety by this cautionary statement. 

SOURCE DAMON Motors Inc.