Damon Inc. Files Q3 2024 10-Q

TL;DR

Damon Inc. (fka Grafiti Holding) filed its 10-Q for Q3 2024. Financials out now.

AI Summary

Damon Inc. filed its 10-Q for the quarterly period ended September 30, 2024. The company, formerly known as Grafiti Holding Inc. until a name change on November 9, 2023, is incorporated in British Columbia and operates in computer programming services. Its principal executive offices are located at 704 Alexander Street, Vancouver, BC V6A 1E3.

Why It Matters

This filing provides investors with the latest financial performance and operational details for Damon Inc. for the third quarter of 2024.

Risk Assessment

Risk Level: low — This is a standard 10-Q filing with no immediate red flags or significant new disclosures.

Key Players & Entities

• Damon Inc. (company) — Registrant
• Grafiti Holding Inc. (company) — Former company name
• 20240930 (date) — Quarterly period end date
• 20231109 (date) — Date of name change
• 001-42190 (company) — Commission File Number

FAQ

Filing Documents

• ea0224015-10q_damon.htm (10-Q) — 580KB
• ea022401501ex3-1_damon.htm (EX-3.1) — 21KB
• ea022401501ex31-1_damon.htm (EX-31.1) — 10KB
• ea022401501ex31-2_damon.htm (EX-31.2) — 10KB
• ea022401501ex32-1_damon.htm (EX-32.1) — 4KB
• ex3-1_001.jpg (GRAPHIC) — 11KB
• ex3-1_002.jpg (GRAPHIC) — 29KB
• ex3-1_003.jpg (GRAPHIC) — 6KB
• 0001213900-24-109877.txt ( ) — 3948KB
• dmn-20240930.xsd (EX-101.SCH) — 36KB
• dmn-20240930_cal.xml (EX-101.CAL) — 28KB
• dmn-20240930_def.xml (EX-101.DEF) — 183KB
• dmn-20240930_lab.xml (EX-101.LAB) — 325KB
• dmn-20240930_pre.xml (EX-101.PRE) — 192KB
• ea0224015-10q_damon_htm.xml (XML) — 313KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION F-1 Item 1.

Financial Statements

Financial Statements F-1 Condensed Consolidated Balance Sheets as of September 30, 2024 and June 30, 2024 F-2 Condensed Consolidated Statements of Operations for the three months ended September 30, 2024 and 2023 F-3 Condensed Consolidated Statements of Comprehensive Loss for the three months ended September 30, 2024 and 2023 F-4 Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit) for the three months ended September 30, 2024 and 2023 F-5 Condensed Consolidated Statements of Cash Flows for the three months ended September 30, 2024 and 2023 F-6 Notes to Unaudited Condensed Consolidated Financial Statements F-7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 1 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 11 Item 4.

Controls and Procedures

Controls and Procedures 11

- OTHER INFORMATION

PART II - OTHER INFORMATION 12 Item 1.

Legal Proceedings

Legal Proceedings 12 Item 1A.

Risk Factors

Risk Factors 12 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 12 Item 3. Defaults Upon Senior Securities 12 Item 4. Mine Safety Disclosures 12 Item 5. Other Information 12 Item 6. Exhibits 12

Signatures

Signatures 13 i SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS AND OTHER INFORMATION CONTAINED IN THIS REPORT This Quarterly Report on Form 10-Q (this "Form 10-Q") contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements are based on our management's current expectations, assumptions or forecasts of future events based on information currently available to our management. You can identify these statements by the fact that they do not relate strictly to historical or current facts. You can find many (but not all) of these "anticipates," "estimates," "projects," "intends," "plans," "would," "should," "could," "may" or other similar expressions in this Form 10-Q. In particular, these include anticipated products; anticipated expenses; and projected financial results. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to: our history of losses; our ability to implement our growth strategy and achieve profitability; our limited operating history with recent acquisitions; our ability to obtain adequate financing in the future as needed; customer demand for or acceptance of the products and services we develop or supply; the impact of competitive or alternative products, technolo

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

: FINANCIAL STATEMENTS

ITEM 1: FINANCIAL STATEMENTS The accompanying condensed consolidated financial the accounting principles that are generally accepted in the United States of America and in accordance with the instructions for Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete

financial statements

financial statements. In the opinion of management, the condensed consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments necessary to present fairly the financial condition, results of operations, and cash flows of the Company for the interim periods presented. The results for the period ended September 30, 2024 are not necessarily indicative of the results of operations for the full year. These financial statements and related notes should be read in conjunction with the consolidated financial statements and notes thereto included in our audited consolidated financial statements for the fiscal years ended June 30, 2024 and 2023, which were included in the information statement filed as Exhibit 99.1 to our amended registration statement on Form 10-12B filed with the SEC on September 26, 2024. F-1 DAMON INC. (FORMERLY GRAFITI HOLDING INC.) CONDENSED CONSOLIDATED BALANCE SHEETS As of September 30, 2024 As of June 30, 2024 (Unaudited) (Audited) Assets Current Assets Cash $ 175,292 $ 1,148,904 Accounts receivable 55,865 30,572 Note receivable, net of $ 238,103 and $ 108,568 allowance for credit losses 907,897 441,432 Prepaid expenses 76,721 70,487 Other current assets 24,614 548 Total Current Assets 1,240,389 1,691,943 Property and equipment, net 2,276 2,392 Other assets 265 251 Total Assets $ 1,242,930 $ 1,694,586 Liabilities and Stockholders' Deficit Current Liabilities Accounts payable $ 972,125 $ 440,688 Accrued liabilities 104,513 59,921 Deferred revenue 151,377 144,390 Total Current Liabilities 1,228,015 644,999 Long Term Liabilities Long term debt, net 1,974,316 1,506,561 Total Liabilities 3,202,331 2,151,560 Commitments and Contingencies Stockholders' Deficit Common Stock - $ 0 par value, unlimited shares authorized and 4,615,384 and 3,600,001 shares issued and outstanding as o

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 Note 1 - Organization and Nature of Business Damon Inc. (formerly known as Grafiti Holding Inc. ("Grafiti Holding")) (collectively with its subsidiaries, as appropriate, "Damon", the "Company," "we," "us" or "our") was incorporated in British Columbia, Canada on October 17, 2023. Grafiti Limited (formerly known as "Inpixon Limited") was incorporated in England and Wales on May 13, 2020. Grafiti Limited provides specialized scientific software products and services for the environmental sciences, life sciences, behavioral sciences, medical research and engineering domains. Grafiti Limited provides effective solutions to the scientific and engineering community to compress the time intensive process of data analysis and presentation, thus enhancing productivity. Users of Grafiti Limited's products include government organizations, academic institutions and leading corporations. Grafiti Limited's headquarters are located in Slough, United Kingdom, and operations for Grafiti Limited are primarily performed in the United Kingdom. On October 23, 2023, a Business Combination Agreement (as amended by the First Amendment to the Business Combination Agreement dated June 18, 2024 and the Second Amendment to the Business Combination Agreement dated September 26, 2024, the "Damon Business Combination Agreement") was entered into by and among XTI Aerospace Inc., formerly known as "Inpixon" ("Inpixon," or "Parent"), the Company, 1444842 B.C. LTD ("Amalco Sub"), and Damon Motors, Inc. ("Damon Motors"), pursuant to which Damon Motors will amalgamate with Amalco Sub, a British Columbia corporation and a wholly-owned subsidiary of the Company, with Damon Motors continuing as the surviving entity and a wholly-owned subsidiary of the Company (the "Business Combination"). Additionally, pursuant to a Separation and Distribution Agreement, dated October 23, 2023, between Inpixon and the Company, Inpixon con

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