Electric Motorcycle Development - Damon Motors is developing electric motorcycles and personal mobility products, focusing on innovation and strategic partnerships [176]. - The HyperDrive platform features a 150 kW motor and is designed to compete in the high-performance motorcycle market, with price points ranging from $20,000 to $80,000 [178]. - The company aims to build a premium electric motorcycle brand that rivals major competitors in both profit and annual volume [179]. - Damon Motors is in the prototype phase of product validation for its electric motorcycles, with commercial production expected to commence after passing various tests [181]. Financial Performance - Revenue for the three months ended March 31, 2025, was $81,411, and for the nine months ended March 31, 2025, it was $130,934, compared to $nil for the same periods in 2024, attributed to the consolidation of Grafiti Limited [213]. - Gross profit margin for the three and nine months ended March 31, 2025, was 51% and 53%, respectively [214]. - Net loss for the three months ended March 31, 2025, was $25,163,438, compared to a net loss of $13,096,933 for the same period in 2024, primarily due to the impairment recognized [225]. - The Company incurred a net loss of $2,354,505 for the nine months ended March 31, 2025, a significant decrease from a net loss of $25,604,984 for the same period in 2024 [226]. - Income from change in fair value of financial liabilities increased by approximately $47,273,000 for the nine months ended March 31, 2025, compared to a loss of $12,939,830 for the same period in 2024 [227]. Expenses and Impairments - Research and development expenses decreased to $959,672 for the three months ended March 31, 2025, from $1,805,747 in 2024, and to $2,014,226 for the nine months ended March 31, 2025, from $3,760,318 in 2024 [215][216]. - General and administrative expenses increased to $3,702,113 for the three months ended March 31, 2025, from $1,531,065 in 2024, and to $6,674,473 for the nine months ended March 31, 2025, from $4,895,715 in 2024 [217]. - The Company recorded a non-recurring impairment of goodwill of $14,045,955 and an impairment of intangible assets of $74,000 for the three months ended March 31, 2025 [223]. - Transaction costs amounted to $203,000 for the three months and $5,620,436 for the nine months ended March 31, 2025, compared to $nil for the same periods in 2024 [222]. Cash Flow and Financing - Cash used in operating activities increased to $14,676,985 for the nine months ended March 31, 2025, up from $10,746,591 in 2024, primarily due to increased operating expenses [231]. - The Company had cash of $7,555,820 and a working capital deficiency of approximately $21.1 million as of March 31, 2025 [228]. - Cash provided by financing activities was $21,774,284 for the nine months ended March 31, 2025, compared to $8,701,545 in 2024, reflecting an increase of $13,072,739 [233]. - The Company received approximately $14,767,000 from recent financing completed in March 2025 [234]. - The Company expects to continue incurring operating losses and negative cash flows in the short term as it executes its growth strategy [228]. Strategic Acquisitions and Partnerships - Grafiti Limited distributes data analytics software for scientific and engineering applications, aiming to increase recurring revenues through expanded product offerings [183][184]. - The company is pursuing strategic acquisitions to enhance its technology and product offerings, focusing on operational synergies and complementary technologies [185]. Future Expectations - The Company anticipates an increase in research and development expenses due to a Technical Design Agreement for the development of the HyperSport Race electric motorcycle [216]. - The Company expects sales and marketing expenses to increase in the coming months as it launches marketing campaigns for the HyperSport Race [221].

Core Viewpoint - Damon Inc. is focused on enhancing its financial position and diversifying its business model to accelerate revenue generation, transitioning from a motorcycle company to a broader personal mobility solutions provider [2][5]. Financial Performance - For FY25 Q3, the net loss was approximately $2.4 million, or $0.11 per diluted share, a significant improvement from a net loss of $25.6 million, or $2.11 per diluted share, in the same period last year [9]. - Total cash increased to $7.56 million at March 31, 2025, compared to $396,000 at the end of June 2024 [13]. - Total liabilities decreased to $29.1 million at March 31, 2025, down from $52.2 million at the end of June 2024 [13]. - Stockholders' deficit reduced to $21.3 million at March 31, 2025, compared to $50.4 million at the end of June 2024 [13]. - Operating expenses for the quarter were approximately $29.0 million, compared to $9.5 million in the same period last year, largely due to a Goodwill Impairment [13]. Business Model and Strategy - The company completed a $16.5 million underwritten public offering and established a $10 million prepaid equity line of credit facility [8]. - Damon has redefined its mission to focus on four core revenue verticals: Data Intelligence, Personal Mobility, Licensing and Engineering Services, and Special Projects [8]. - The company is implementing an asset-light business model through strategic partnerships to optimize operational efficiency [9]. Product Development and Innovation - Damon is advancing the development of the HyperSport Race Motorcycle in collaboration with Engines Engineering, with an expected product delivery timeline of within 12 months and reduced development costs to under $10 million [8]. - The company holds over 38 patents and patents pending, with proprietary safety systems and electrification technology as key differentiators in the market [6]. Market Position - Damon aims to capture a significant share of the $40 billion global electric two-wheeler market by 2030, leveraging its integrated ecosystem approach and advanced data analytics [11].

Electric Motorcycles Development - Damon Motors is developing electric motorcycles with a proprietary 150 kW motor-gearbox and a patented HyperDrive platform, aiming for price points between $20,000 and $80,000[146] - The HyperDrive platform allows for a modular approach, supporting motorcycles equivalent to 500 – 1500cc, with 85% common parts across models[146] - Damon Motors plans to commence commercial production after completing various internal and external tests, including FCC and UN battery testing[149] Business Combination and Subsidiaries - On October 23, 2023, the company completed a business combination with Damon Motors, resulting in Damon Motors becoming a wholly-owned subsidiary[154] - Following the business combination, securityholders of Damon Motors acquired approximately 82% of the outstanding common shares of the combined company[159] - Grafiti Limited, a subsidiary, distributes data analytics software for scientific research, aiming to increase recurring revenues through cloud-compatible products[150][151] Financial Performance - Revenue for the three and six months ended December 31, 2024, was $49,523, compared to $0 for the same periods in 2023, attributed to the consolidation of Grafiti Limited[185] - Cost of revenue for the three and six months ended December 31, 2024, was $21,332, resulting in a gross profit margin of 60%[186] - Research and development expenses for the three months ended December 31, 2024, were $997,333, an increase of $979,989 compared to $17,344 in the same period of 2023[187] - General and administrative expenses for the three months ended December 31, 2024, were $2,182,333, an increase of $368,194 compared to $1,814,139 in the same period of 2023[188] - The company reported a net income of $32,521,108 for the three months ended December 31, 2024, compared to a net loss of $7,130,860 for the same period in 2023[184] - Total operating expenses for the three months ended December 31, 2024, were $5,477,187, compared to $2,223,073 in the same period of 2023[184] - Other non-operating income for the three months ended December 31, 2024, was $37,970,099, compared to a loss of $4,907,787 in the same period of 2023[184] Financing Activities - The company entered into a secured promissory note agreement with Streeterville Capital for $6,470,000, granting security interests in its assets[162] - An additional note purchase agreement with East West for $8,385,000 includes an original issue discount of $1,885,000, with funding scheduled in tranches[163] - The company has entered into a Securities Purchase Agreement with Streeterville for up to $10,000,000, with an initial pre-paid purchase of $2,000,000[174] - The BHI Note has an original principal amount of $8,385,000, with an original issue discount of $1,885,000 and bears interest at 10% per annum[168] - Cash provided by financing activities for the six months ended December 31, 2024, was $6,962,852, down from $8,706,142 in the same period in 2023, reflecting a decrease of $1,743,290[199] Cash Flow and Working Capital - Cash used in operating activities for the six months ended December 31, 2024, was $6,636,484, a decrease from $8,854,640 for the same period in 2023, reflecting efforts to preserve cash[198] - As of December 31, 2024, the company had cash of $788,561 and a working capital deficiency of approximately $10 million, raising concerns about its ability to continue as a going concern[194] - The company experienced negative cash flows from operating activities of approximately $6.6 million for the six months ended December 31, 2024, primarily due to ongoing operating costs and transaction costs related to the business combination[194] Changes in Financial Liabilities - The company incurred a change in the fair value of financial liabilities that increased by approximately $42,903,000 for the six months ended December 31, 2024[195] - For the three months ended December 31, 2024, the company reported a net income of $32,521,108, compared to a net loss of $7,130,860 for the same period in 2023, primarily due to changes in the fair value of financial liabilities[193] - Other non-operating income for the three months ended December 31, 2024, was $37,970,099, an increase of $42,877,886 compared to a loss of $4,907,787 in the same period in 2023[192] Strategic Acquisitions and Growth Strategy - The company is pursuing strategic acquisitions to enhance its personal mobility ecosystem, focusing on technologies that complement its existing offerings[152] - The company’s accumulated deficit and expected future losses may lead to continued operating losses and negative cash flows in the short term as it executes its growth strategy[194] - Proceeds from convertible notes decreased by approximately $8,470,000, while proceeds from other financing sources increased, indicating a mixed funding environment[200] Sales and Marketing Expenses - Sales and marketing expenses decreased to $178,379 for the three months ended December 31, 2024, from $196,660 for the same period in 2023, attributed to reduced sales and marketing activities[191] Trading Information - The combined company commenced trading on the Nasdaq Global Market under the symbol "DMN" on November 18, 2024[158]

Business Development - Damon Motors is developing high-performance electric motorcycles using the proprietary HyperDrive platform, which features a 150 kW motor and is designed to compete with market leaders in both internal combustion and electric segments [149]. - The HyperDrive platform allows for a range of motorcycle models with price points between $20,000 and $80,000, targeting 500 – 1500cc power equivalent classes in North America and Europe [149]. - Damon Motors plans to commence commercial production after completing various internal and external tests, including FCC Title 47 certification and FMVSS compliance [152]. - The company aims to build a premium electric motorcycle brand that rivals major incumbents by leveraging patented technologies like CoPilot and Shift for enhanced rider experience [150][151]. - Damon Motors has undergone a business combination, resulting in a change of control, with securityholders of Damon Motors acquiring approximately 82% of the outstanding common shares of the combined company [159]. - The combined company commenced trading on the Nasdaq Global Market under the symbol "DMN" on November 18, 2024 [158]. - Damon Motors is also developing the HyperLite platform for lower-cost motorcycles aimed at overseas and developing markets [150]. Financial Performance - Revenues for the three months ended September 30, 2024, were $101,969, an increase of $4,061 or approximately 4% compared to $97,908 for the same period in 2023 [177]. - Cost of revenues increased to $39,647 for the three months ended September 30, 2024, from $23,805 in the prior year, representing a 67% increase [178]. - Gross profit margin decreased to 61% for the three months ended September 30, 2024, down from 76% in the same period of 2023 [179]. - Operating expenses surged to $1,482,768 for the three months ended September 30, 2024, compared to $77,795 in the prior year, marking an increase of 1,804% [180]. - Net loss for the three months ended September 30, 2024, was $1,564,540, compared to a net loss of $3,692 for the same period in 2023, reflecting a significant increase in losses [176]. - EBITDA for the three months ended September 30, 2024, was a loss of $1,420,193, compared to a loss of $3,476 for the prior year period [183]. - Adjusted EBITDA for the three months ended September 30, 2024, was a loss of $334,896, compared to a loss of $3,476 for the same period in 2023 [183]. Cash Flow and Working Capital - The company reported a working capital surplus of $12,374 as of September 30, 2024 [192]. - Cash balance as of September 30, 2024, was $175,292 [192]. - Net cash used in operating activities during the three months ended September 30, 2024, was $799,535, primarily due to the net loss [190]. - The Company secured a commitment for additional financing totaling $13,000,000 on November 13, 2024, and released $3,150,000 from escrow on November 20, 2024, ensuring sufficient working capital for at least the next 12 months [193]. - For the three months ended September 30, 2024, the net cash used in operating activities was approximately $799,535, compared to a net cash provided of $57,285 for the same period in 2023 [194][197]. - The net loss for the three months ended September 30, 2024 was $1,564,540, while the net loss for the same period in 2023 was $3,692 [195][197]. - Net cash used in investing activities for the three months ended September 30, 2024 was $596,000, attributed to a loan to Damon Motors, with no investing activities reported in the same period of 2023 [199]. - Net cash provided by financing activities for the three months ended September 30, 2024 was $414,335, which included $350,000 from a note payable and $64,335 from stock option exercises, compared to $32,193 in 2023 [200]. - As of September 30, 2024, the Company had cash of $175,292, a significant decrease from $1,148,904 as of June 30, 2023 [194]. - The working capital surplus as of September 30, 2024 was $12,374, down from $1,046,944 as of June 30, 2023 [194]. - The net change in operating assets and liabilities for the three months ended September 30, 2024 was $491,123, primarily due to a $528,078 increase in accounts payable [196]. - The non-cash income and expenses for the three months ended September 30, 2024 totaled $273,882, mainly from depreciation and amortization expenses [195]. - The Company does not have any off-balance sheet guarantees or trading activities involving non-exchange traded contracts [201].