Wed, Dec 18, 11:01 AM (61 days ago)
Damon Inc. (DMN) reported mixed financial results for Q3 2024, ending September 30. Revenue rose 4% year-over-year to $101,969, but gross profit decreased by 16% to $62,322, resulting in a gross margin of 61%, down from 76%. This decline was primarily due to higher costs of revenues, which surged 67% to $39,647, attributed to revised licensing terms post-spin-off. Operating expenses skyrocketed to $1,482,768, largely driven by $1,085,297 in acquisition-related costs linked to the business combination with Damon Motors. Consequently, the net loss ballooned to $1,564,540, significantly higher than the prior year's loss of $3,692. Cash flows showed significant strain, with net cash used in operations at $799,535. The company ended the quarter with $175,292 in cash, down from $1,148,904 at June 30. Despite this, Damon secured $13 million in financing commitments post-quarter, enhancing liquidity for future operations. The company faces ongoing uncertainties, particularly related to its ability to generate positive cash flows independently from prior parent Inpixon.