Revenue and Profitability - Revenue for the three months ended September 30, 2025, was $80,691, compared to $0 for the same period in 2024, attributed to the consolidation of Grafiti Limited[130] - Cost of revenue for the same period was $40,345, resulting in a gross profit margin of 50%[131] - Operating loss for the three months ended September 30, 2025, was $(2,826,011), compared to $(1,899,941) in 2024[129] - Net loss for the three months ended September 30, 2025, was $(3,302,459), an improvement from $(7,412,175) in 2024[129] - The company incurred a net loss of $3,302,459 for the three months ended September 30, 2025, a decrease from a net loss of $7,412,175 in the same period of 2024, mainly due to a reduction in fair value losses[140] Expenses - Research and development expenses increased to $1,109,302 for the three months ended September 30, 2025, from $57,221 in 2024, primarily due to decreased tax credits and increased engineering contract expenses[132] - General and administrative expenses rose to $1,689,370 for the three months ended September 30, 2025, compared to $790,027 in 2024, driven by higher legal, audit, and consulting fees[134] - Sales and marketing expenses decreased to $130,966 for the three months ended September 30, 2025, from $174,166 in the same period of 2024, primarily due to reduced marketing activities[136] - The company anticipates an increase in sales and marketing expenses in the coming months due to the launch of the HyperSport Race marketing campaigns[136] Cash Flow and Financial Position - Cash used in operating activities was $1,759,059 for the three months ended September 30, 2025, down from $2,160,571 in the same period of 2024, reflecting a positive impact from changes in working capital[144] - The company had cash of $682,232 and a working capital deficiency of approximately $13.7 million as of September 30, 2025, raising concerns about its ability to continue as a going concern[141] - Negative cash flows from operating activities were approximately $1.8 million for the three months ended September 30, 2025, primarily due to ongoing operating costs and financing costs[141] - Cash flows used in financing activities were $36,821 for the three months ended September 30, 2025, compared to cash provided of $1,878,540 in the same period of 2024[145] Business Development and Strategy - The company is pursuing partnerships with personal mobility OEMs and complementary technology providers to enhance its integrated personal mobility ecosystem[122] - Damon Motors is developing the HyperDrive platform, which features a proprietary 150 kW motor and is designed to compete in the high-performance motorcycle market with price points ranging from $20,000 to $80,000[116] - The company anticipates an increase in research and development expenses due to a Technical Design Agreement for the HyperSport Race electric motorcycle[133] - The company has initiated a Tier II Regulation A offering of up to 300,000,000 units at $0.10 per unit, aiming for gross proceeds of up to $30 million[125] - The company expects to continue incurring operating losses and negative cash flows in the short term as it executes its growth strategy and develops operations[141]
Damon Inc(DMN) - 2026 Q1 - Quarterly Report