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Damon Inc. (DMN-7.80%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports revenues of $101,969 for the quarter, an increase from $97,908 in the same quarter the previous year. The increase in revenue is attributed to higher sales of Grafiti Limited's software products.
Cost of revenues for the quarter was $39,647, resulting in a gross profit of $62,322, compared to $74,103 in the previous year. The decrease in gross profit is due to revised terms of the technology licensing arrangement post the spin-off.
Operating expenses increased significantly to $1,482,768 from $77,795, primarily due to $1,085,297 in costs related to the business combination with Damon Motors.
The company reported a net loss of $1,564,540 for the quarter, compared to a net loss of $3,692 in the previous year. The increase in net loss is mainly due to acquisition-related costs and provisions for credit losses.
Cash used in operating activities was $799,535, while cash used in investing activities was $596,000, primarily for a loan to Damon Motors.
Damon Inc. completed a business combination with Damon Motors, resulting in Damon Motors becoming a wholly-owned subsidiary. The company changed its name from Grafiti Holding Inc. to Damon Inc.
The filing details various financing agreements, including a secured promissory note with Streeterville Capital LLC and additional financing commitments totaling $13,000,000.
Damon Inc. plans to commence commercial production of its motorcycles after completing various internal and external tests required for US-bound vehicle homologation.
The company acknowledges its dependence on obtaining additional financing to meet future obligations and continue operations for the next 12 months.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Damon Inc. quarterly 10-Q report dated December 18, 2024. To report an error, please email earnings@qz.com.