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Damon Inc. (DMN)
NASDAQ:DMN
US Market

Damon (DMN) AI Stock Analysis

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DM

Damon

(NASDAQ:DMN)

Rating:18Underperform
Price Target:
Damon Inc. is facing critical financial challenges with significant operational losses and high financial risk. Technical analysis indicates bearish trends, and valuation is unappealing due to lack of profitability. While recent corporate actions show efforts to reduce debt, the termination of loan agreements may hinder future financing, adding to the company's precarious position.

Damon (DMN) vs. SPDR S&P 500 ETF (SPY)

Damon Business Overview & Revenue Model

Company DescriptionDamon Inc. is a two-wheel technology company that develops and manufactures advanced warning systems for motorcycles, aiming to enhance rider safety through innovations in sensor fusion, robotics, and AI. The company also designs and produces electric motorcycles, including models like HyperFighter and HyperSport. Founded on October 17, 2023, Damon Inc. is headquartered in Vancouver, Canada, with an additional office in San Rafael, California.
How the Company Makes Money

Damon Financial Statement Overview

Summary
Damon Inc. is experiencing severe financial distress. The company is not profitable, with significant operational losses and declining revenue. The balance sheet is weak, with negative equity and high debt levels posing a substantial risk. Cash flow is negative, heavily relying on external funding, which is unsustainable. Urgent restructuring is needed.
Income Statement
10
Very Negative
Damon Inc. exhibits significant financial challenges. The company has negative net income, resulting in a negative net profit margin, indicating a lack of profitability. While gross profit margin is high, operational losses are substantial, as reflected in negative EBIT and EBITDA margins. Revenue has decreased by 14.11% year-over-year, further highlighting declining performance.
Balance Sheet
5
Very Negative
Damon Inc.'s balance sheet is concerning, with negative stockholders' equity suggesting insolvency. The debt-to-equity ratio is not meaningful due to negative equity, while total debt surpasses total assets. Such a structure suggests high financial risk and limited financial flexibility, threatening the company's stability.
Cash Flow
15
Very Negative
Cash flow analysis reveals severe issues. Free cash flow is negative, and while there has been some improvement in operating cash flow to net income ratio, it remains negative. Financing activities are the only positive cash flow source, indicating heavy reliance on external funding, which is unsustainable long-term.
Breakdown
TTMJun 2024Jun 2023Jun 2022
Income StatementTotal Revenue
231.80K336.56K391.85K0.00
Gross Profit
149.50K254.48K296.63K0.00
EBIT
-16.58M-17.86M-32.04M-27.72M
EBITDA
12.49M-17.79M-35.16M-36.15M
Net Income Common Stockholders
7.55M-21.77M-37.01M-36.74M
Balance SheetCash, Cash Equivalents and Short-Term Investments
788.56K6.15M2.07M8.96M
Total Assets
16.20M8.41M4.52M14.93M
Total Debt
7.06M7.12M18.15M1.46M
Net Debt
6.27M972.87K16.08M-7.49M
Total Liabilities
17.18M17.65M28.99M4.23M
Stockholders Equity
-974.30K-9.24M-24.47M10.70M
Cash FlowFree Cash Flow
-10.65M-12.87M-21.09M-25.88M
Operating Cash Flow
-10.65M-12.87M-21.08M-24.44M
Investing Cash Flow
77.27K0.00-778.68K-2.71M
Financing Cash Flow
9.45M11.20M13.83M25.28M

Damon Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$8.88B15.054.75%203.76%3.54%-2.50%
42
Neutral
$3.67M19.40%-98.78%92.98%
40
Underperform
$5.13M-132.63%-47.62%8.34%
39
Underperform
$2.92M-213.60%19.71%99.98%
39
Underperform
$5.12M-3842.15%2136.62%99.30%
28
Underperform
$275.99K
DMDMN
18
Underperform
$4.17M
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DMN
Damon
0.01
-1.81
-99.45%
AYRO
AYRO
0.43
-0.39
-47.56%
MULN
Mullen Automotive
5.62
-169,800,074.38
-100.00%
EVTV
Envirotech Vehicles
0.20
-1.18
-85.51%
VLCN
Volcon
0.65
-56.63
-98.87%
ZAPPF
Zapp Electric Vehicles
0.06
-0.69
-92.00%

Damon Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Damon Inc. Terminates Loan Agreements with Key Partners
Negative
Apr 2, 2025

On March 29, 2025, Damon Inc. announced the termination of several loan agreements with Braebeacon Holdings Inc. and East West Capital, LLC. These agreements, originally dated November 13, 2024, included Note Purchase Agreements, Secured Promissory Notes, Security Agreements, Intellectual Property Security Agreements, and Guarantees. No funds had been received by Damon Inc. under these agreements prior to their termination. The termination extinguishes all rights and obligations under these agreements, impacting the company’s financial arrangements and potentially its future financing strategies.

Private Placements and FinancingBusiness Operations and Strategy
Damon Inc. Reduces Debt with Securities Purchase Agreement
Positive
Mar 14, 2025

Damon Inc. has engaged in a financial transaction under a Securities Purchase Agreement with Streeterville Capital, LLC, receiving $4,400,000 out of a committed $10,000,000. As of March 14, 2025, the company has reduced its outstanding principal balance to $3,158,000, with an additional $53,258 in accrued interest, after issuing 8,133,614 common shares to Streeterville. This transaction impacts the company’s financial operations by decreasing its debt and increasing its common shares to 31,419,728 as of the same date.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.