VANCOUVER, BC, Feb. 18, 2025 /CNW/ - 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 partnerships, is providing this operational business update and overview of its financial results for the quarter ended December 31, 2024.
Damon Inc. logo (CNW Group/DAMON Motors Inc.)
FY25 Q2 Accomplishments and Highlights:
The Company became publicly traded on NASDAQ under the symbol DMN
Co-founder Dominique (Dom) Kwong appointed as interim CEO and Shashi Tripathi appointed as Chairman of the Board to drive operational excellence and accelerate execution of the company's business plans
Launched Damon 2.0 strategy focused on expanding total addressable market while accelerating and diversifying potential revenue generation through multiple channels
Progressed to asset/capital-light partnership model to support sustainable growth strategy
Established four core potential revenue verticals: Data Intelligence, Personal Mobility, Licensing and Engineering Services, and Special Projects
Improved Balance Sheet position compared to prior year through conversion of convertible debt
Secured $10 million equity line of credit financing facility
"In Q2, Damon executed pivotal strategic shifts, including key leadership transitions and the introduction of our Damon 2.0 strategy," said Dominique Kwong, interim CEO of Damon. "We've established four distinct potential revenue verticals - Data Intelligence, Personal Mobility, Licensing and Engineering Services, and Special Projects - creating multiple pathways for growth. Our proprietary safety systems and electrification technology continue to be core differentiators in the market, supported by an improved balance sheet position," continued Mr. Kwong.
"Moving forward, we're implementing an asset-light business model through strategic partnerships, bolstered by our new $10 million equity line of credit financing facility. This approach optimizes our operational efficiency while advancing our mission in mobility innovation and data intelligence. Our strategic focus on sustainable transportation solutions, combined with our diversified potential revenue streams, positions us strongly for long-term value creation," concluded Mr. Kwong.
Financial Results for FY25 Q2 (ended December 31, 2024)
Financial Performance:
Net income in the quarter was approximately $32.5 million, or $2.51 per diluted share, compared to a net loss of $7.1 million, or $(2.76) per diluted share, in the same period last year
Cash, Financing, Liabilities:
Total cash was $789k as at December 31, 2024 compared to $396k year ended June 30, 2024
Total Liabilities reduced to $17.2 million as at December 31, 2024 compared to $52.2 million year ended June 30, 2024
Stockholders' Deficit reduced to $974k as at December 31, 2024 compared to $50.4 million year ended June 30, 2024
Financing activities after the quarter ended in the amount of $7 million compared to $8.7 million in the same period last year
Operating Performance:
Operating expenses were approximately $5.5 million in the quarter, compared to $2.2 million in the same period last year
General and administrative expenses were approximately $2.1 million compared to $1.8 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.
1 Source McKinsey Report on Micromobility (2022)
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 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.
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.
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 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, our ability to maintain compliance with Nasdaq's continued listing requirements, 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 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.
