#United States #Damon Inc. #electric motorcycles #HyperDrive technology #San Rafael

Damon Inc. CEO's Business Update

Damon Inc., renowned for its cutting-edge electric motorcycles, has officially released a letter from CEO Jay Giraud, shedding light on the company's progress and future aspirations. This communication serves as a vital insight into the challenges caught in the evolving electric vehicle market.

Business Achievements

Damon Inc. has made impressive strides since its inception. Notably, the company has secured over 3,000 refundable reservations, which could potentially yield around $100 million in revenue, pending conversion to confirmed sales. The company has also made significant headway in intellectual property, with 16 patents granted and 22 patent applications currently pending, covering the proprietary technologies integral to its unique electric vehicles, such as the HyperDrive™ powertrain and CoPilot™ safety system. Furthermore, the development of vehicle mechanics and power electronics has reached a completion stage of approximately 90%, while the battery system is 70% complete.

These milestones, while promising, are not without their challenges. Damon Inc.'s future achievements are intrinsically linked to securing adequate financing to support its ambitious production plans.

Production Roadmap

Subject to funding, Damon Inc. has outlined a strategic production roadmap.

• - Late-Stage Engineering (2024–2025): Damon plans to finalize mechanical and electrical systems, complete battery system development, and validate key components during this phase.
• - Pre-Production (Target Completion Q4 2025): The company aims to build and test prototypes to verify designs and ensure regulatory compliance.
• - Production and Commercialization (Target Start 2026): Plans are underway to establish a manufacturing facility at its headquarters in San Rafael, California, contingent upon securing the necessary capital and obtaining all required regulatory approvals.

Strategic Partnerships

Damon is supported by leading companies such as Fukuta Motors, NXP Semiconductor, and Molicel, enhancing its capabilities and resource availability. Recently completed is a merger with Grafiti Holdings, which has provided Damon the much-needed bridge financing during a period of tough financial market conditions.

Journey to Production

Damon Inc.'s path to production has not been devoid of hurdles. The company initially raised $26 million in Series B financing in 2022, which was intended to kickstart production. However, financial conditions worsened dramatically following the volatile SPAC market period, severely restricting access to capital for many startups, particularly in the electric vehicle sector.

Despite these challenges, Damon has remained resilient, implementing multiple cost-cutting measures while maintaining operations. The need to navigate unprecedented inflation rates and high-interest environments has necessitated significant adjustments to the initial timelines for production.

Transition to Public Markets

Recognizing the necessity for capital, Damon opted to go public in October 2023 through a merger with Grafiti Holdings, allowing the company to prepare for its Nasdaq entry. Addressing the array of demands related to going public proved challenging, but ultimately, achieving the Nasdaq listing equips Damon with new avenues for raising the capital required for its production goals.

The Path Ahead

Damon Inc. not only boasts a robust reservation list but is guided by a talented team of 15 engineers and skilled subcontractors, underscoring its commitment to innovation in motorcycle technology. With the preliminary development of its proprietary technology nearing completion, Damon Inc. is eagerly anticipating the transition into pre-production by late 2025 and commercial production by 2026.

Despite current uncertainties, Damon Inc. exemplifies tenacity and ambition in the electric motorcycle landscape, offering safety and sustainability as keystones of its mission. For more updates, visit Damon Inc.'s official website.