Damon Inc. Reports Revenue Growth to $81,411 Amid Increased Net Loss of $25.2 Million

Damon Inc. reported its financial results for the three months ending March 31, 2025, revealing a revenue of $81,411, a significant increase from zero revenue in the same period last year. The company also reported a gross profit of $41,250, marking a notable shift as it had no gross profit in the prior year. However, Damon Inc. incurred a net loss of $25.2 million for the quarter, compared to a loss of $13.1 million in the same quarter of the previous year. The increase in losses is attributed to higher operational costs, including a substantial impairment charge of $14.1 million related to goodwill and intangible assets.

In terms of operational changes, Damon Inc. underwent a significant transformation following its business combination with Damon Motors Inc. on November 13, 2024. This merger has positioned Damon Motors as a wholly-owned subsidiary, allowing the company to focus on developing electric motorcycles and personal mobility solutions. The company has also seen a substantial increase in its cash reserves, rising to $7.6 million as of March 31, 2025, compared to $395,580 at the end of the previous fiscal year.

Damon Inc. reported a total of 503.8 million common shares outstanding as of March 31, 2025, a significant increase from 2.6 million shares at the end of June 2024. The company’s stockholders’ deficit improved to $21.3 million from $50.4 million, reflecting the impact of the business combination and subsequent capital raises. The company has also indicated that it is actively seeking to expand its market presence, particularly in the electric mobility sector, which is expected to drive future growth.

The filing highlights that Damon Inc. is facing challenges related to its ability to continue as a going concern, primarily due to its history of losses and the need for additional financing to support its operations and development plans. The company has utilized approximately $14.7 million in cash for operations in the nine months ending March 31, 2025, and has accumulated a deficit of $143 million. Management is exploring various financing options to mitigate these challenges, although there is no assurance that sufficient funding will be secured.

Looking ahead, Damon Inc. anticipates continued investment in research and development to enhance its product offerings and market competitiveness. The company is also preparing for a transition to trading on the OTC Pink Current Market following a delisting from Nasdaq, which is expected to occur on May 20, 2025. The management remains optimistic about the potential for growth in the electric mobility market, contingent upon successful execution of its strategic initiatives and securing necessary financing.