Things look very bad for Damon electric motorcycles

[Biketographer]

Damon Motorcycles faces a potential Nasdaq delisting as production delays, internal turmoil, and missed milestones threaten its future in the electric motorcycle market.  ...

Now trading at just $0.0075 on the Nasdaq, Damon faces the very real possibility of being delisted. That's a staggering fall for a company that once boasted $100 million in pre-orders from over 3,000 hopeful customers. But here's the real kicker: not a single bike has made it to production.

https://news.imotorbike.com/en/2025/05/damon-motorcycles-nasdaq-electric/

Canadian electric motorcycle brand-in-the-making Damon has been taking a beating on the stock ticker lately, with its shares plummeting to US$0.0075 on the Nasdaq exchange at the time of writing.

https://newatlas.com/motorcycles/damon-motorcycles-stock-wipeout/

...the company's CTO, Derek Dorresteyn—who was previously one of the chief architects of Alta Motorcycles—just left the company. That makes him the second high-profile executive to flee.

https://www.rideapart.com/features/750361/damon-motorcycles-electric-ev-derek-dorresteyn-leaves/

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VANCOUVER, BC, May 19, 2025 /PRNewswire/ - 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 collaborations, is providing this operational business update and overview of its financial results for the quarter ended March 31, 2025.

Since the start of Q3, Damon has made significant strides in improving its financial position, diversifying its business model, and accelerating its expected path to revenue generation.

FY25 Q3 Accomplishments and Recent Highlights

    Completed a $16.5 million underwritten public offering, in addition to the $10 million prepaid equity line of credit facility established in December 2024

    Terminated a $13 million debt facility

    Redefined company mission to focus on four core potential revenue verticals: Data Intelligence, Personal Mobility, Licensing and Engineering Services, and Special Projects

    Broadened scope of potential product offerings beyond motorcycles to include other personal mobility products and technology solutions with licensing opportunities and data intelligence applications

    Minimized burn rate through strategic headcount reductions and expenditure management

    Signed an agreement with renowned Italian engineering firm Engines Engineering to develop the HyperSport Race Motorcycle, advancing the vehicle's development through defined engineering milestones and prototyping phases

    Accelerated expected timeline to initial HyperSport Race Motorcycle product delivery within 12 months, while reducing expected development costs to under $10 million

Listing Status

The Nasdaq staff has informed the Company that its common shares will resume trading on Nasdaq for one trading day, on May 19, 2025, prior to being delisted as of the following trading day.  The Company expects to begin trading on the OTC Pink Current Market effective May 20, 2025.  The Company is seeking to have its shares traded on the OTCQB Venture Market maintained by OTC Markets Group (the "OTCQB"), though no assurance can be provided that the Company will be able to satisfy the criteria for trading on the OTCQB or that the staff of OTC Markets Group will approve the Company's application to trade on the OTCQB.

Commentary from Dominique Kwong, CEO of Damon

"Since the start of the quarter and calendar 2025, we believe we have made tremendous progress in strengthening Damon's financial foundation while diversifying our business model to open up new potential high-margin revenue streams. We are not just a motorcycle company anymore. We are now a company committed to powering sustainability through personal mobility products and intelligent data solutions. With what we believe is an expanded market opportunity and accelerated path to revenue, Damon is positioned to capitalize on the great potential at the intersection of electrification, connectivity and data intelligence.

Damon's proprietary safety systems and electrification technology, backed by over 38 patents and patents pending, continue to be core differentiators in the market. The company's new Damon IO technology stack enables real-time data collection and analysis, which we believe will provide valuable insights and increase revenue potential.

While recent events have presented a speed bump on our journey, we remain fully committed to our strategic roadmap and growth trajectory. We view this as a temporary challenge that we are actively working to overcome, with the goal of emerging stronger and more resilient. Our focus remains on operational excellence, product innovation, and transparent communication with our stakeholders as we continue executing on our vision.

Moving forward, we're implementing an asset-light business model through strategic partnerships, bolstered by our recent financings. This approach optimizes our operational efficiency while advancing our mission in mobility innovation and data intelligence. We believe combining our diversified potential revenue streams and strategic focus on sustainable personal mobility solutions positions us strongly for long-term value creation."

Financial Results for FY25 Q3 (ended March 31, 2025)

Financial Performance:

    Net loss in the quarter was approximately $2.4 million, or $0.11 per diluted share, compared to a net loss of $25.6 million, or $2.11 per diluted share, in the same period last year.

Cash, Financing, Liabilities:

    Total cash was $7.56 million at March 31, 2025 compared to $396k year ended June 30, 2024.

    Total Liabilities reduced to $29.1 million at March 31, 2025 compared to $52.2 million year ended June 30, 2024.

    Stockholders' Deficit reduced to $21.3 million at March 31, 2024 compared to $50.4 million year ended June 30, 2024.

    Financing activities during the quarter ended in the amount of $21.8 million compared to $8.7 million in the same period last year.

Operating Performance:

    Operating expenses in the quarter were approximately $29.0 million, compared to $9.5 million in the same period last year, which was largely due to a Goodwill Impairment.

    General and administrative expenses in the quarter were approximately $6.7 million compared to $4.9 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.