Damon (DMN) AI Stock Analysis

• Market Cap: $4.17M
• Dividend Yield: N/A
• Average Volume (3M): 202.84M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.56
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 16
• Sector: Consumer Defensive
• Sector Strength: 61
• Industry: Auto - Manufacturers
• EPS (TTM): N/A
• Shares Outstanding: 2,450,477,000
• 10 Day Avg. Volume: 507,699,498
• 30 Day Avg. Volume: 202,836,235
• PEG Ratio: <0.01
• Price to Book (P/B): -0.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.06
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 18 Underperform
• 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 Business Overview & Revenue Model

Company Description

Damon 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

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

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

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
TTM	Jun 2024	Jun 2023	Jun 2022
Income Statement		Total Revenue
231.80K	336.56K	391.85K	0.00
	Gross Profit
149.50K	254.48K	296.63K	0.00
	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 Sheet		Cash, Cash Equivalents and Short-Term Investments
788.56K	6.15M	2.07M	8.96M
	Total Assets
16.20M	8.41M	4.52M	14.93M
	Total Debt
7.06M	7.12M	18.15M	1.46M
	Net Debt
6.27M	972.87K	16.08M	-7.49M
	Total Liabilities
17.18M	17.65M	28.99M	4.23M
	Stockholders Equity
-974.30K	-9.24M	-24.47M	10.70M
Cash Flow		Free Cash Flow
-10.65M	-12.87M	-21.09M	-25.88M
	Operating Cash Flow
-10.65M	-12.87M	-21.08M	-24.44M
	Investing Cash Flow
77.27K	0.00	-778.68K	-2.71M
	Financing Cash Flow
9.45M	11.20M	13.83M	25.28M

Damon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$8.88B	15.05	4.75%	203.76%	3.54%	-2.50%
AYRO	42 Neutral	$3.67M	―	19.40%	―	-98.78%	92.98%
EVTV	40 Underperform	$5.13M	―	-132.63%	―	-47.62%	8.34%
VLCN	39 Underperform	$2.92M	―	-213.60%	―	19.71%	99.98%
MULN	39 Underperform	$5.12M	―	-3842.15%	―	2136.62%	99.30%
ZAPPF	28 Underperform	$275.99K	―		―	―	―
DMN	18 Underperform	$4.17M	―		―	―	―

Damon Corporate Events

Damon Inc. Terminates Loan Agreements with Key Partners

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.

Damon Inc. Reduces Debt with Securities Purchase Agreement

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.