# EDGAR Filing Document

**Accession Number:** 0002000640
**File Stem:** 0001213900-25-066644
**Filing Date:** 2025-7
**Character Count:** 954893
**Document Hash:** 40883bd9abb32a2af2f4c21b3835c8f7
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-25-066644.hdr.sgml**: 20250722

**ACCESSION NUMBER**: 0001213900-25-066644

**CONFORMED SUBMISSION TYPE**: 1-A

**PUBLIC DOCUMENT COUNT**: 24

**FILED AS OF DATE**: 20250722

**DATE AS OF CHANGE**: 20250722

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Damon Inc.
- **CENTRAL INDEX KEY:** 0002000640
- **STANDARD INDUSTRIAL CLASSIFICATION:** MOTORCYCLES, BICYCLES & PARTS [3751]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 000000000
- **STATE OF INCORPORATION:** A1
- **FISCAL YEAR END:** 0630

**FILING VALUES:**
- **FORM TYPE:** 1-A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 024-12643
- **FILM NUMBER:** 251140610

**BUSINESS ADDRESS:**
- **STREET 1:** 704 ALEXANDER STREET
- **CITY:** VANCOUVER
- **STATE:** A1
- **ZIP:** V6A 1E3
- **BUSINESS PHONE:** 4087022167

**MAIL ADDRESS:**
- **STREET 1:** 704 ALEXANDER STREET
- **CITY:** VANCOUVER
- **STATE:** A1
- **ZIP:** V6A 1E3

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Grafiti Holding Inc.
- **DATE OF NAME CHANGE:** 20231109

## Part

**AN OFFERING STATEMENT PURSUANT TO REGULATION A RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. INFORMATION CONTAINED IN THIS PRELIMINARY OFFERING CIRCULAR IS SUBJECT TO COMPLETION OR AMENDMENT. THESE SECURITIES MAY NOT BE SOLD NOR MAY OFFERS TO BUY BE ACCEPTED BEFORE THE PRELIMINARY OFFERING STATEMENT FILED WITH THE COMMISSION IS QUALIFIED. THIS OFFERING CIRCULAR SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR MAY THERE BE ANY SALES OF THESE SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL BEFORE REGISTRATION OR QUALIFICATION UNDER THE LAWS OF ANY SUCH STATE. WE MAY ELECT TO SATISFY OUR OBLIGATION TO DELIVER A FINAL OFFERING CIRCULAR BY SENDING YOU A NOTICE WITHIN TWO BUSINESS DAYS AFTER THE COMPLETION OF OUR SALE TO YOU THAT CONTAINS THE URL WHERE THE OFFERING CIRCULAR WAS FILED MAY BE OBTAINED.**

**PRELIMINARY OFFERING CIRCULAR<br> SUBJECT TO COMPLETION, DATED JULY 22, 2025**

![](image_001.jpg)

**<u>DAMON INC.</u>**

**<u>Best Efforts Offering of</u>**

**<u>Up to 300,000,000 Common Shares $0.10 per Common Share</u>**

Damon Inc., a British Columbia corporation referred to herein as the "**Company**", "**Damon**", "**we**", "**us**" or "**our**" and similar terms, is conducting a best-efforts offering of up to **300,000,000** common shares in the capital of the Company (each, a "**Common Share**" and, collectively, the "**Common Shares**") at a price of $**0.10** per Common Share (the "**Offering**"). The minimum amount you may invest in this Offering is $**1,000.00** for **10,000** Common Shares, and any additional purchases must be made in increments of at least $1,000.00. However, we reserve the right to waive this minimum in our sole discretion. See "*Plan of Distribution*" on page 148 herein for more information.

Our Common Shares are traded on the OTCID Basic Market under the symbol "DMNIF", however, as a result of our recent reverse stock split effective on July 3, 2025, our current trading symbol is "DMNID" until August 1, 2025, when our symbol will revert to "DMNIF". On July 21, 2025, the last reported sale price of our Common Shares was $0.09 per Common Share.

We are offering our Common Shares on a best-efforts basis, meaning there is no guarantee that we will receive any proceeds from the sale of our Common Shares in this Offering. We have engaged DealMaker Securities LLC (the "**Broker**"), a registered broker-dealer and member of the Financial Industry Regulatory Authority ("**FINRA**"), and its affiliates to provide broker-dealer compliance services, technology, and marketing support in connection with this Offering. See "*Plan of Distribution*" herein for more information.

We estimate that this Offering will commence within two days of SEC qualification; this Offering will terminate at the earliest of (a) the date on which the maximum Offering has been sold, (b) one year from the date of SEC qualification or (c) the date on which this Offering is earlier terminated by us, in our sole discretion. See "*Plan of Distribution.*"

To participate in this Offering, you must complete a subscription agreement available through our offering page at www.invest.damon.com, and deposit your investment funds in our non-interest-bearing escrow account with Enterprise Bank & Trust, who we refer to as the Escrow Agent. If we reject your subscription, in whole or in part, or if we accept it but do not conduct a closing of this Offering thereafter due to the termination of the Offering for any reason, the Escrow Agent will promptly return your investment funds without interest or deduction, in accordance with Rule 10b-9 under the United States Securities Exchange Act of 1934, as amended (the "**Exchange Act**"). Until a closing of the Offering occurs, your subscription agreement will remain revocable and your investment funds will be refundable. Once a closing has occurred, your subscription will become irrevocable, your funds will no longer be refundable and your Common Shares will be issued. This Offering is continuous and ongoing within the meaning of Rule 251(d)(3) of Regulation A, and closings, each of which we refer to as a "**Closing**", and collectively, the "**Closings**", may occur from time to time throughout the term of the Offering to maximize economic efficiency. Notwithstanding the foregoing, we intend to conduct a Closing at least every four to eight weeks following the first Closing.

---

| | | | |
|:---|:---|:---|:---|
|  | **Price to Public (Offering)** | **Underwriting<br> Discount and<br> Commissions <sup>(1)</sup>** | **Proceeds to Company before Expenses<sup>(2)</sup>** |
| Price per Common Share: | $0.10 | $0.0045 | $0.0955 |
| Investor Processing Fee: | $0.002<sup>(3)</sup> |  | $600000 |
| Price Per Common Share Plus Investor Processing Fee: | $0.102 |  |  |
| Total Maximum (with Investor Processing Fees): | $30600000 | $1850500<sup>(1)(4)</sup> | $28749500 |

---

(1) The Common Shares are being offered in the
 Offering on a "best efforts" basis through the Broker, with which the Company
 is a party to a Broker-Dealer Agreement ()"**Broker-Dealer Agreement** "). For
 performing broker-dealer pre-offering analysis, pre-offering consulting and advisory, compliance
 and consulting services in connection with this Offering, the Broker will receive the Brokerage
 Commission. There is other compensation associated with the Broker and its affiliates as
 well described further in "Plan of Distribution" herein, but in summary are one-time
 and monthly accountable expenses and fees. When the Company signed the Broker-Dealer Agreement,
 the Broker was to receive one-time payment of $27,500 advance (the "**Broker Advance** ")
 against accountable expenses anticipated to be incurred in the Offering (refundable to the
 Company to the extent of expenses not actually incurred by the Broker), and once the Cash
 Offering commences receive a four and one half percent (4.5%) commission on all cash proceeds
 collected by the Company. The proceeds of the Offering may be deposited directly into the
 Company's operating account for its immediate use, with no obligation to refund subscriptions.
 We may be required to indemnify the Broker and possibly other parties with respect to disclosures
 made in this Offering Circular. The calculated maximum Offering compensation to Broker and
 affiliates is $1,850,500. See "*Plan of Distribution*" for details regarding
 the compensation payable to the Broker and its affiliates in connection with this Offering.

(2) The amounts shown in "*Proceeds to the Company*" section reflects amounts after deducting Offering expenses. Offering
 expenses do not include legal, accounting, printing and blue sky compliance fees and expenses
 incurred in this Offering. See "*Use of Proceeds*" and "*Plan of Distribution*" for more details.

(3) At the time of each subscription, the investor
 will be required to pay the Company a 2.0% investor processing fee (the "**Investor Processing Fee**") to help offset certain transaction expenses for which the Company
 is required to pay or reimburse affiliates of the Broker. In the table above, the figures
 for "Price Per Common Share Plus Investor Processing Fee" and the "Total
 Maximum (with Transaction Fees)" assume all investors in the aggregate, in an Offering
 that is fully subscribed, pay the Company a total of $600,000 in Investor Processing Fees.
 The Broker will receive a cash commission on Investor Processing Fees. See "Plan of
 Distribution" for more details.

(4) This amount consists of the amounts paid to
 the Broker described above and compensation to its affiliates. Compensation to the Broker
 affiliates totals $446,000. See "Plan of Distribution" for details regarding
 the compensation payable to the Broker and its affiliates in connection with this Offering.

**Investing in the Common Shares involves a high degree of risk. These are speculative securities. You should purchase these securities only if you can afford a complete loss of your investment. See "*Risk Factors*" starting on page 13 for a discussion of certain risks that you should consider in connection with an investment in the Common Shares.**

**THE U.S. SECURITIES AND EXCHANGE COMMISSION (THE "SEC") DOES NOT PASS UPON THE MERITS OF OR GIVE ITS APPROVAL TO ANY SECURITIES OFFERED OR THE TERMS OF THE OFFERING, NOR DOES IT PASS UPON THE ACCURACY OR COMPLETENESS OF ANY OFFERING CIRCULAR OR OTHER SOLICITATION MATERIALS. THESE SECURITIES ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE SEC; HOWEVER, THE SEC HAS NOT MADE AN INDEPENDENT DETERMINATION THAT THE SECURITIES OFFERED ARE EXEMPT FROM REGISTRATION.**

**GENERALLY, IF YOU ARE NOT AN ACCREDITED INVESTOR, NO SALE MAY BE MADE TO YOU IN THIS OFFERING IF THE AGGREGATE PURCHASE PRICE YOU PAY IS MORE THAN 10% OF THE GREATER OF YOUR ANNUAL INCOME OR NET WORTH. DIFFERENT RULES APPLY TO ACCREDITED INVESTORS AND NON-NATURAL PERSONS. BEFORE MAKING ANY REPRESENTATION THAT YOUR INVESTMENT DOES NOT EXCEED APPLICABLE THRESHOLDS, WE ENCOURAGE YOU TO REVIEW RULE 251(d)(2)(i) OF REGULATION A. FOR GENERAL INFORMATION ON INVESTING, WE ENCOURAGE YOU TO REFER TO WWW.INVESTOR.GOV.**

We are an "emerging growth company," as defined under the federal securities laws, and, as such, we have elected to comply with certain reduced public company reporting requirements for this Offering Circular and future filings.

This Offering Circular follows the disclosure format of Form S-1, pursuant to the General Instructions of Part II(a)(1)(ii) of Form 1-A.

*Broker-Dealer*

**<u>DEALMAKER SECURITIES LLC</u>**

![](image_002.jpg)

**TABLE OF** **CONTENTS**

---

| | |
|:---|:---|
| [**about this offering circular**](#a_001) | **ii** |
| [**Cautionary Statement Regarding Forward-Looking Statements**](#a_002) | **iii** |
| [**Offering Circular Summary**](#a_003) | **1** |
| [**THE OFFERING**](#a_004) | **11** |
| [**Risk Factors**](#a_005) | **13** |
| [**Use of Proceeds**](#a_006) | **54** |
| [**DIVIDEND POLICY**](#a_007) | **55** |
| [**Market INFORMATION**](#a_008) | **55** |
| [**CAPITALIZATION**](#a_009) | **55** |
| [**Dilution**](#a_010) | **56** |
| [**UNAUDITED SELECTED FINANCIAL DATA**](#a_011) | **58** |
| [**UNAUDITED PRO FORMA CONDENSED COMBINED AND CONSOLIDATED COMBINED FINANCIAL INFORMATION**](#a_012) | **60** |
| [**Management's Discussion and Analysis of Financial Condition and Results of Operations**](#a_015) | **67** |
| [**BUSINESS DESCRIPTION**](#a_016) | **89** |
| [**MANAGEMENT**](#a_017) | **109** |
| [**EXECUTIVE COMPENSATION**](#a_018) | **116** |
| [**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS**](#a_019) | **131** |
| [**PRINCIPAL SHAREHOLDERS**](#a_020) | **134** |
| [**DESCRIPTION OF SECURITIES**](#a_021) | **136** |
| [**SHARES ELIGIBLE FOR FUTURE SALE**](#a_022) | **139** |
| [**CERTAIN CANADIAN FEDERAL INCOME TAX CONSIDERATIONS FOR NON-RESIDENTS OF CANADA**](#a_023) | **141** |
| [**MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS FOR NON-U.S. HOLDERS**](#a_024) | **142** |
| [**Plan of Distribution**](#a_025) | **148** |
| [**LEGAL MATTERS**](#a_026) | **151** |
| [**EXPERTS**](#a_027) | **151** |
| [**WHERE YOU CAN FIND MORE INFORMATION**](#a_028) | **151** |
| [**information incorporated by reference**](#a_029) | **152** |
| **[SIGNATURES](#a_030)** | **III-5** |
| [**POWER OF ATTORNEY**](#a_031) | **III-5** |

---

- i -

**about this offering circular**

We are offering our Common Shares, and soliciting offers to purchase them, only in jurisdictions where such offers and sales are permitted under a continuing offering pursuant to Rule 251(d)(3)(i)(F) of Regulation A. You should rely solely on the information contained in this Offering Circular. We have not authorized anyone to provide information different from or in addition to that contained in this Offering Circular. The information presented herein is accurate only as of the date on the cover, regardless of the time of delivery or any sale of our securities. Neither the delivery of this Offering Circular nor any sale of our securities implies that there has been no change in our affairs since the date of this Offering Circular. This Offering Circular will be updated and delivered as required by applicable federal securities laws. From time to time, we may provide offering circular supplements that update, modify or replace information included in this Offering Circular. Any statement contained herein will be deemed modified or superseded to the extent that a subsequent offering circular supplement contains an inconsistent statement. This Offering Circular includes exhibits that provide additional details about the matters discussed in this Offering Circular. You should read this Offering Circular, any related amendments or supplements, and the exhibits to this Offering Circular together with the information contained in our periodic filings, including annual, semi-annual and other reports filed with the SEC. All such documents are available on the SEC's website at www.sec.gov.

We are responsible for the information contained in this Offering Circular. This document includes industry and market data derived from third-party studies, surveys, and industry publications. These sources typically indicate that the information was obtained from sources believed to be reliable; however, they do not guarantee the accuracy or completeness of such information. The forecasts and projections contained in these materials are based on historical market data and assumptions, and there can be no assurance that any such forecasts will be realized. Industry and market data may be inaccurate or incomplete due to the methodologies used by the original sources and the inherent limitations in collecting and verifying such data. These limitations include the voluntary nature of data collection, gaps in raw data, and the inability to verify all information with absolute certainty. Market and industry information used in this Offering Circular is subject to risks and uncertainties that may change over time and could materially affect actual outcomes. See the section titled "*Risk Factors*" herein for more information on these uncertainties. Additionally, other parties applying different methods of data collection or analysis may reach different conclusions.

We use, and may continue to use, various trademarks, trade names, and service marks in our business. For convenience, this Offering Circular may omit the™,®, or ℠ symbols when referring to our trademarks or those of others. Such omissions are not intended to indicate any waiver of rights, and we will assert our intellectual property rights to the fullest extent permitted by law. This Offering Circular may also reference trademarks, trade names, or service marks owned by third parties. All such marks are the property of their respective owners, and our use or display of them does not imply any affiliation with, or endorsement or sponsorship by, those owners.

- ii -

**Cautionary Statement Regarding Forward-Looking Statements**

This Offering Circular, and the information incorporated by reference herein, contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "**Securities Act**") and Section 21E of the Exchange Act. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of such terms and other comparable terminology. These forward-looking statements include, without limitation, statements about our market opportunity, our strategies, ability to improve and expand our capabilities, competition, expected activities and expenditures as we pursue our business plan, the adequacy of our available cash resources, regulatory compliance, plans for future growth and future operations, the size of our addressable market, market trends, and the effectiveness of the Company's internal control over financial reporting. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. Actual results may differ materially from the projections discussed in these forward-looking statements. The economic environment within which we operate could materially affect our actual results. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. These risks and other factors include, but are not limited to, those listed under "*Risk Factors*." Additional factors that could materially affect these forward-looking statements and/or projections include, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;(i) the risk that the price of Common Shares
 may be volatile due to a variety of factors, including changes in the highly competitive
 industries in which the Company operates, variations in performance across competitors, changes
 in laws, regulations and technologies that may impose additional costs and compliance burdens
 on the Company's operations, global supply chain disruptions and shortages and macro-economic
 and social environments affecting the Company's businesses;

&nbsp;&nbsp;&nbsp;&nbsp;(ii) the inability to implement the Company's
 business plans, forecasts and other expectations, or identify and realize additional opportunities;

&nbsp;&nbsp;&nbsp;&nbsp;(iii) the risk that the Company has not achieved
 sales and production capacity at a mass-production facility, and that the Company and its
 current and future collaborators may be unable to successfully develop and market the Company's
 electric personal mobility products or solutions, or may experience significant delays in
 doing so;

&nbsp;&nbsp;&nbsp;&nbsp;(iv) the risk that the Company may never achieve
 or sustain profitability;

&nbsp;&nbsp;&nbsp;&nbsp;(v) the risk of the Company to continue as
 a going concern;

&nbsp;&nbsp;&nbsp;&nbsp;(vi) the risk of the Company's status
 as a foreign private issuer;

&nbsp;&nbsp;&nbsp;&nbsp;(vii) the impact of the recent delisting from
 Nasdaq and the Company's ability to develop and maintain adequate trading liquidity
 on the OTCID Basic Market;

&nbsp;&nbsp;&nbsp;&nbsp;(viii) the risk that the Company may be unable
 to raise additional capital on acceptable terms to finance its operations and remain a going
 concern;

&nbsp;&nbsp;&nbsp;&nbsp;(ix) the risk that the Company continues to
 experience difficulties in expanding its operations or, if its operations are expanded, managing
 its growth;

&nbsp;&nbsp;&nbsp;&nbsp;(x) any adverse changes in U.S., Canadian
 or global general economic, business, market, financial, political or legal conditions, including
 as a consequence of the ongoing uncertainties relating to inflation, interest rates, global
 supply chain disruptions, international trade tensions, armed conflicts, or other geopolitical
 developments;

- iii -

&nbsp;&nbsp;&nbsp;&nbsp;(xi) any inability to successfully and economically
 manufacture and distribute the Company's electric personal mobility products at scale;

&nbsp;&nbsp;&nbsp;&nbsp;(xii) reliance on key management and any inability
 to attract and/or retain key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;(xiii) any inability to raise additional funds
 to meet its capital requirements and pursue its growth strategy when and in the amounts needed;

&nbsp;&nbsp;&nbsp;&nbsp;(xiv) any inability to secure adequate insurance
 coverage or a potential increase in insurance costs;

&nbsp;&nbsp;&nbsp;&nbsp;(xv) the Company's ability to develop
 and maintain effective internal controls;

&nbsp;&nbsp;&nbsp;&nbsp;(xvi) the risk of potential litigation resulting
 in the diversion of management's time and attention and the Company's resources
 needed to address any such litigation that may arise; and

&nbsp;&nbsp;&nbsp;&nbsp;(xvii) any inability to secure adequate insurance
 coverage or a potential increase in insurance costs.

Management has included projections and estimates in this Offering Circular, which are based primarily on management's experience in the industry, assessments of our results of operations, discussions and negotiations with third parties, and a review of information filed by our competitors with the SEC or otherwise publicly available.

In some cases, you can identify forward-looking statements by terms such as "may", "could", "will", "should", "would", "expect", "plan", "intend", "anticipate", "believe", "estimate", "predict", "potential", "project" or "continue", or the negative of these terms or other comparable terminology. These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and which could materially affect results. Factors that may cause actual results to differ materially from current expectations include, among other things, those listed under the heading "*Risk Factors*" and elsewhere in this Offering Circular. If one or more of these risks or uncertainties occur, or if our underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected by the forward-looking statements. No forward-looking statement is a guarantee of future performance.

The forward-looking statements made in this Offering Circular relate only to events or information as of the date on which the statements are made in this Offering Circular. We do not intend to update or otherwise revise the forward-looking statements in this Offering Circular, whether as a result of new information, future events or otherwise.

*This summary highlights selected information that is presented in greater details elsewhere, or incorporated by reference in this Offering Circular. This summary is not complete and does not contain all the information that you should consider before deciding whether to invest in our Common Shares. You should carefully read the entire Offering Circular, including the risks associated with an investment in the Company discussed in the section titled "Risk Factors" herein before making an investment decision. Some of the statements in this Offering Circular are forward-looking statements. See the section titled "Cautionary Statement Regarding Forward-Looking Statements" herein. Unless the context otherwise indicates, when used in this Offering Circular, the terms the "Company", "Damon", "we", "us" and "our" and similar terms refer to Damon Inc. and our wholly owned subsidiaries.*

- iv -

**Offering Circular Summary**

**Corporate History**

**Spin-Off**

We were incorporated under the laws of British Columbia, Canada, on October 17, 2023. Through our wholly-owned subsidiary, Grafiti Limited, which was transferred to us on December 26, 2023 by our former parent company, XTI Aerospace Inc. ("**Parent**"), we operate a business in the United Kingdom ("**UK**") providing a comprehensive set of data analytics and statistical visualization solutions for engineers and scientists. On December 27, 2023 (the "**record date**"), we were spun off by the Parent, by means of a transfer of all of our then outstanding common shares held by the Parent (the "**spinoff shares**"), to the Grafiti Holding Inc. Liquidating Trust (the "**Trust**"), to be held for the benefit of holders of the Parent's common stock, preferred stock and those outstanding warrants that were contractually entitled to participate in the distribution (collectively, the "**participating securityholders**"), on a pro rata basis as of the record date. As described in further detail in our registration statement on Form 10-12B filed in connection with the spinoff and declared effective by the SEC on November 12, 2024 (the "**Form 10**"), for U.S. federal income tax purposes we believe that the transfer by the Parent of the spinoff shares to the trust was treated as a taxable distribution by the Parent to the participating securityholders of the spinoff shares on the record date and the subsequent transfer by the participating securityholders of the spinoff shares to the Trust on the same date. The Trust held the spinoff shares until the effective date of the Form 10-12B registration statement on November 12, 2024, promptly following which the Trust delivered the spinoff shares to the participating securityholders, as beneficiaries of the Trust, pro rata in accordance with their ownership of shares or underlying shares of the Parent's common stock as of the record date.

**The Business Combination and Related Transactions**

On November 13, 2024, we completed a business combination transaction with Damon Motors Inc. ("**Damon Motors**"), a designer and developer in electric motorcycles and other personal mobility products that empower the personal mobility sector through innovation, data intelligence and strategic partnerships, resulting in Damon Motors becoming our wholly-owned subsidiary (the "**Business Combination**"). Upon completion of the Business Combination with Damon Motors, we changed our corporate name to "Damon Inc.". For further information about these transactions, please refer to the current report on Form 8-K filed by the us with the SEC on November 18, 2024.

The rights of holders of our Common Shares are governed by our Charter, our Articles and the Business Corporations Act (British Columbia) ("**BCBCA**"). For more details, please refer to the section titled "*Description of Securities*" herein. The Company's Common Shares are traded on the OTCID Basic Market under the symbol "DMNIF", however, as a result of our recent reverse stock split effective on July 3, 2025, our current trading symbol is "DMNID" until August 1, 2025, when our symbol will revert to "DMNIF".

The Business Combination was accounted for using the acquisition method (as a reverse acquisition), with goodwill and other identifiable intangible assets recorded in accordance with accounting principles generally accepted in the United States, as applicable. Under this method of accounting, Grafiti Holding is treated as the "acquired" company for financial reporting purposes. Damon Motors was determined to be the accounting acquirer because, after the Business Combination, Damon Motors will control the Board of Directors and management of the combined company, and the preexisting shareholders of Damon Motors have majority voting rights of the combined company. For accounting purposes, the acquirer is the entity that has obtained control of another entity and, thus, consummated a business combination.

**Business Overview**

**Our Personal Mobility Products Development Business Through Damon Motors**

The Company, through its wholly-owned subsidiary Damon Motors, is developing electric motorcycles and other personal mobility products that seek to empower the personal mobility industry through innovation, data intelligence and strategic partnerships. Damon Motors is developing technology and investing in the capabilities to lead an integrated personal mobility ecosystem from individual travels to last mile delivery. With decades of combined management and engineering experience across the team's careers, and a commitment to low carbon personal mobility solutions, Damon Motors is seeking to introduce existing enthusiasts to high-performance electric products while bringing new riders to the motorcycle community with first of its kind advances in zero emissions motorcycle performance, safety, connectivity and artificial intelligence ("**AI**").

Founded in 2017, Damon Motors started reimagining the future of motorcycling by means of advanced safety design, electric vehicle powertrain technology and user experience. In 2019, Damon Motors took its first alpha prototype motorcycles and safety systems into the field to test the concept. In 2021, Damon Motors expanded its operations and research and development expertise to accelerate the engineering and development of its HyperDrive platform drive unit and the HyperSport motorcycle. Through core technology advancements, Damon Motors electric motorcycles are in prototype phase of product validation.

Damon Motors' electric vehicles are developed with a set of proprietary design principles that elevate the brand, deliver differentiated riding experiences and bring emotion to electric propulsion. The initial product portfolio of motorcycle models will be built upon and utilize a single powertrain platform called HyperDrive™. As a patented, monocoque-constructed battery-chassis, HyperDrive houses a proprietary 150 kW 6-phase liquid cooled IPM motor-gearbox and proprietary electronics. This platform approach establishes a capital-efficient path to grow the product line to meet a wide range of future segments and price points, while also supporting a wide range of future motorcycle models and power sizes that share as much as 85 percent common parts. By using the frame of the battery as the motorcycle's chassis, HyperDrive also achieves valuable weight and cost reduction advantages. With 150 kW of power at its disposal, HyperDrive has been specifically designed to compete with the performance of market leaders in the high-performance motorcycle market, whether internal combustion or electric. Thanks to the energy modularity designed into it, HyperDrive-based motorcycles can be detuned in power, energy and thus cost to support 500 – 1500cc power equivalent classes of motorcycles in both the North American and European markets, with price points ranging from $20,000 - $80,000.

The HyperDrive platform is contrasted by the smaller, less powerful and lower cost HyperLite platform, currently in its early design phase. HyperLite will be developed using a very similar design architecture as HyperDrive, enabling the production of a range of light weight, low to medium cost motorcycles and scooters with milder levels of horsepower that are more common in overseas and developing markets. With these two platforms, paired with Damon Motors' three patented cornerstone technologies, CoPilot™, Shift™ and its AI-enabled cloud platform, Damon Motors' long-term objective is to build a premium, high-tech, electric motorcycle company that rivals the largest incumbents in both profit and annual volume, by providing a technologically enhanced riding experience that is not currently available from other manufacturers.

CoPilot provides a novel rider assistance and warning system integrated into the motorcycle. Shift allows the handlebars and foot pegs to mechatronically adjust on the fly, addressing issues of ergonomic comfort and allowing users to select different riding positions for changing conditions such as a lower, more aerodynamic position for highway use or a more upright position for urban use. Its AI-enabled cloud will collect environmental and situational data that, paired with over-the-air software updates, can drive a continual loop of collision warning improvements, with an aim to further reduce accident probability over time.

The commercial production of Damon Motors' motorcycles is expected to commence after passing various internal and external tests and undergoing a self-certification process required for US-bound vehicle homologation. These tests include: the completion of Damon Motors' ride quality and long-term durability testing; completion of FCC Title 47 certification for the onboard charger; completion of UN 38.3 battery testing; completion of Damon Motors' internal battery testing; extreme temperature operation verification; brake testing per FMVSS; and an internal and external review of FMVSS compliance with Damon Motors engineering subcontractor TUV of Germany.

**Our SAVES Distribution Business Through Grafiti Limited**

The Company, through its wholly-owned subsidiary, Grafiti Limited, distributes in the UK and certain other European countries data analytics and visualization software products referred to as "**SAVES**" primarily for scientists and engineers. Grafiti Limited products can be downloaded to a user's desktop. These products help scientific research in the health and life sciences domain in the discovery of new drugs, in the study of the efficacy of established drugs and therapies, and in epidemic propagation research, among other applications. Engineers use our products for a multitude of applications which include, but are not limited to, conducting surface modelling analysis and curve fitting in order to design new engineering processes, studying signal attenuation and propagation in radio engineering. Potential automobile and motorcycle applications could include surface panel design for aerodynamics, aesthetic symmetry, and calculated asymmetry among others. We believe the Grafiti Limited regression analysis product could also be used for predicting vehicle sharing demand and pricing trends in various markets based on a wide range of variables.

Grafiti Limited's strategy is to build a broader, long term customer base by increasing its sales of Grafiti Limited's product offerings which will include cloud and Macintosh compatible data analytics and statistical visualization software products. We believe this will enable the Grafiti Limited business to focus on generating more recurring revenues in the future.

Grafiti Limited was formed by the Parent on May 13, 2020, as a distribution arm for its SAVES products in the UK market and part of the European market.

**Our Corporate Strategy**

We are pursuing a corporate strategy focused on developing a business offering of end-to-end solutions ranging from personal mobility products to the collection of data to delivering insights from that data to our customers with a focus on safety and data intelligence and engineering services. In connection with such strategy and to facilitate our long-term growth, we continue to evaluate various strategic transactions, including acquisitions of companies with personal mobility products, technologies and intellectual property ("**IP**") that complement those goals by adding technology, differentiation, customers and/or revenue. We are primarily looking for accretive acquisitions that have business value and operational synergies, but will be opportunistic for other strategic and/or attractive transactions. We believe these complementary technologies will add value to the Company and allow us to provide a comprehensive integrated personal mobility ecosystem to our customers. In addition, we may seek to expand our capabilities around safety, security, artificial intelligence, augmented reality and virtual reality or other high growth sectors. Candidates with proven technologies and personal mobility products that complement our overall strategy may come from anywhere in the world, as long as there are strategic and financial reasons to make the acquisition. We are also exploring opportunities that will supplement our revenue growth. We are primarily looking for accretive acquisitions that have business value and operational synergies, yet also opportunistic for other strategic and/or attractive transactions that we believe may increase overall shareholder value, which may include, but not be limited to, other alternative investment opportunities, such as minority investments and joint ventures. If we make any acquisitions in the future, we expect that we may pay for such acquisitions using our equity securities and/or cash and debt financings in combinations appropriate for each acquisition.

**Summary Risk Factors**

Our business is subject to numerous risks and uncertainties, including those highlighted in the section titled "*Risk Factors*" herein, that represent challenges that we face in connection with the successful implementation of our strategy and the growth of our business. In particular, the following risks, among others, may offset our competitive strengths or have a negative effect on our business strategy, which could cause a decline in the price of our common shares and result in a loss of all or a portion of your investment:

● we have broad discretion in the use of the net proceeds from this Offering and we may not use them effectively;

● our share price is volatile and there is a limited market for our Common Share;

● the price of Common Shares offered in the Offering may not reflect the actual or market value of our Common Shares;

● the Company is an early-stage company with a limited operating history and a history of losses and expects to incur significant expenses and continuing losses for the foreseeable future;

● the Company has a history of operating losses and we will need to raise capital in addition to capital raised in this offering to fund our planned operations and, additionally, there is no assurance that we will be able to achieve profitability, raise additional financing or continue as a going concern;

● if securities or industry analysts do not publish research or reports about our business, or publish negative reports about our business, our share price and trading volume could decline;

● we are eligible to be treated as an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012, and we cannot be certain if the reduced disclosure requirements applicable to emerging growth companies will make our Common Shares less attractive to investors;

● as a foreign private issuer, we are exempt from certain U.S. securities laws and regulations that apply to U.S. domestic issuers, which may afford less protection to shareholders;

● we may lose our foreign private issuer status in the future, which could result in significant additional costs and expenses;

● we do not intend to pay cash dividends to our shareholders;

● reporting company compliance may make it more difficult to attract and retain officers and directors;

● our Common Shares have recently been delisted from Nasdaq and are currently traded on the OTCID Basic Market, which may adversely affect the market price and liquidity of our Common Shares and limit our ability to raise additional capital;

● sales of a substantial number of our securities in the public market by us and/or by our existing securityholders could cause the price of our Common Shares to fall;

● our stock price has been volatile, and the issuance of Common Shares upon the exercise of Series A Warrants has resulted in significant dilution. Additional issuances under our current financing arrangements with Streeterville or other new issuances could further depress the market price of our Common Shares;

● the Company's success will depend on its ability to economically produce its vehicles at scale, and its ability to produce vehicles of sufficient quality and appeal to customers on schedule and at a scale that is unproven;

● to carry out its proposed business plan, the Company will require a significant amount of capital and it may be unable to reduce and adequately control the costs associated with operating its business;

● the Company does not currently have arrangements in place that will allow it to fully execute its business plan and may experience significant delays in the design, manufacture, finance, regulatory approval, launch, transportation and delivery of its motorcycles and other potential personal mobility products;

● the Company may not be able to accurately estimate the supply and demand for its vehicles, which could result in a variety of inefficiencies in its business and hinder its ability to generate revenue;

● the Company has received only a limited number of reservations for its vehicles, all of which may be cancelled and are fully refundable, and there is no assurance that such reservations will be converted into sales;

● if the Company fails to manage future growth effectively, it may not be able to produce, market, service and sell (or lease) its motorcycles and other potential personal mobility products successfully;

● the Company's business and prospects depend significantly on its ability to build its brand and service its motorcycles and other potential personal mobility products. The Company may not succeed in continuing to establish, maintain and strengthen the Company brand, and its brand and reputation could be harmed by negative publicity regarding its company or products;

● the motorcycle and personal mobility market is highly competitive, and the Company may not be successful in competing in this industry, which may depend upon consumer's willingness to adopt electric motorcycles and other potential personal mobility products;

● the Company may be adversely affected by the complexity, uncertainties and changes in automotive or internet related Canadian regulations or similar regulations of any countries it is selling motorcycles and other potential personal mobility products into;

● the Company is dependent on its suppliers, some of which are single or limited source suppliers, and the inability of these suppliers to deliver necessary components of the Company's vehicles at prices and volumes acceptable to the Company would have a material adverse effect on its business, financial condition, operating results and prospects;

● the Company depends on certain key personnel, and its success will depend on its continued ability to retain and attract qualified management, technical and vehicle engineering personnel;

● the Company's business plan is and will be dependent on developing one or more manufacturing facilities or partnering with third parties to fulfill this function, and complex machinery;

● dependence on a single licensor for our SAVES products and potential adverse changes to terms could negatively impact our financial condition and results of operations;

● global economic conditions, including inflation and any other financial or economic crisis, or perceived threat of such a crisis, including a significant decrease in consumer confidence, may materially and adversely affect the Company's business, financial condition, results of operations and prospects;

● the Company's risk management efforts may not be effective which could result in unforeseen losses;

● the Company is subject to risks related to customer credit;

● the Company's sales and operating results may fluctuate from quarter-to-quarter and from year-to-year as they are affected, among other things, by the seasonal nature of the Company's products, fluctuation in the Company's operating costs and prevailing market conditions;

● adverse judgments or settlements in legal proceedings, including the claim brought by our former CEO Jay Giraud, the claim brought by Andy DeFrancesco, or those that may arise relating to the Business Combination, could materially harm our business, financial condition, operating results, and cash flows;

● the Company's patent applications may not result in issued patents, which may have a material adverse effect on its ability to prevent others from interfering with the commercialization of the Company's products;

● the Company may need to defend itself against patent or trademark infringement claims, which may be time-consuming and would cause the Company to incur substantial costs;

● our international business exposes us to geo-political and economic factors, trade tariffs, legal and regulatory requirements, fluctuations in exchange rates, public health and other risks associated with doing business in foreign countries;

● the lack of availability, reduction or elimination of government and economic incentives or government policies which are favorable for electric vehicles and Canadian produced vehicles could have a material adverse effect on the Company's business, financial condition, operating results and prospects;

● the construction and operation of one or more assembly facilities that the Company may seek to establish in the future, are or will be subject to regulatory approvals, and may be subject to delays, cost overruns or may not produce expected benefits;

● the Company's vehicles are subject to motor vehicle standards and the failure to satisfy such mandated safety standards would have a material adverse effect on the Company's business, financial condition, operating results and prospects;

● failure of information security and privacy concerns could subject the Company to penalties, damage its reputation and brand, and harm its business, financial condition, operating results and prospects;

● the Company may become subject to product liability claims and recalls, which could harm the Company's financial condition and liquidity if it is not able to successfully defend or insure against such claims;

● the growth of our SAVES distribution business is dependent on increasing sales to our existing customers and obtaining new customers; and

● defects, errors, or vulnerabilities in our SAVES products or services that we sell or the failure of such products or services to prevent a security breach, could harm our reputation and adversely affect our results of operations.

**Corporate Information**

Our principal executive offices are located at 4601 Canada Way, Suite #402, Burnaby, British Columbia, Canada, V5G 4X7. Our telephone number is (236) 326-3619. Our website address is https://damon.com/. The information contained on, or that can be accessed through, our website is not incorporated by reference in this Offering Circular and should not be considered to be part of this Offering Circular.

**Settlement Agreement with Mark Peikin**

As previously disclosed in the current report on Form 8-K as filed with the SEC on November 18, 2024, Damon Motors had entered into an amendment to its engagement agreement with Joseph Gunnar & Co., LLC ("**Joseph Gunnar**") and Mark Peikin ("**Peikin**") (the "**Amendment**"). On March 24, 2025, the Company and Damon Motors entered into a new agreement with Peikin (the "**Settlement Agreement**"), pursuant to which the parties agreed to amend the payment terms with respect to the payment amount set forth in the Amendment. In connection with the Settlement Agreement, Peikin agreed to voluntarily surrender to the Company for cancellation the 1,255,230 Common Shares previously issued to him pursuant to the Amendment (the "**Issued Shares**"), and waive, on behalf of himself and Joseph Gunnar, any default by the Company or Damon Motors to register the Issued Shares timely as required by the Amendment.

Under the Settlement Agreement, the Company agreed to deliver to Peikin an aggregate amount of $2,515,000 (the "**Amended Payment Amount**"), of which $1,515,000 was paid in cash on March 24, 2025, and $1,000,000 (the "**Deferred Amount**"), which may be paid, at the option of the Company, by cash or in Common Shares no later than May 21, 2025, the first trading day following the expiration of the 60-day standstill period set forth in the Underwriting Agreement, dated March 20, 2025, between the Company and Maxim Group LLC. The number of Common Shares to be issued shall be calculated by dividing the Deferred Amount by the lower of (i) the Nasdaq Official Closing Price as of the issuance date; or (ii) the average Nasdaq Official Closing Price of the common stock for the five trading days immediately preceding and including the issuance date. The Company also agreed to file a resale registration statement covering the Common Shares no later than the first trading day following their issuance. In addition, the Company agreed that, without Peikin's prior written consent and subject to customary exceptions, it will not engage in, or publicly announce, any registered offering of equity securities for capital-raising purposes, or any "at-the-market," continuous equity, or variable rate transactions, during the period from the issuance date of the Common Shares until ten business days after the registered Common Shares are delivered following the effectiveness of the resale registration statement.

On June 9, 2025, the Company and Damon Motors entered into an amended settlement agreement (the "**Amended Settlement Agreement**") to fully and finally resolve all outstanding amounts owed to Mr. Peikin pursuant to the Settlement Agreement (the "**Outstanding Settlement Obligations**"). Under the Amended Settlement Agreement, the Company agreed to make a one-time cash payment of $350,000 to Mr. Peikin within one business day following execution of the Amended Settlement Agreement, and Mr. Peikin agreed to waive and release all claims arising from the Outstanding Settlement Obligations. Such amount has been paid to Mr. Peikin in full and final satisfaction of the Outstanding Settlement Obligations.

**December 2024 Securities Purchase Agreement with Streeterville**

On December 20, 2024, we entered into a Securities Purchase Agreement (the "**Streeterville Securities Purchase Agreement**") with Streeterville Capital, LLC ("**Streeterville**"), as amended by the Amendment No. 1 to the Securities Purchase Agreement dated February 27, 2025. Under the Streeterville Securities Purchase Agreement the Company agreed to issue and sell to Streeterville one or more pre-paid purchases at an aggregate purchase price of up to $10,000,000 (the "**Total Commitment Amount**") for the purchase of the Company's Common Shares. As consideration for Streeterville's commitment, the Company also agreed to issue 343,053 Common Shares to Streeterville (the "**Commitment Shares**").

Each pre-paid purchase includes an original issue discount of 7% and accrues interest at an annual rate of 8%. For the initial pre-paid purchase, which closed on December 20, 2024 (the "**Initial Closing Date**"), Streeterville paid $2,000,000, creating in an initial principal balance of $2,140,000.

Pursuant to the Streeterville Securities Purchase Agreement and a registration rights agreement entered into on the same date, the Company agreed to file a registration statement on Form S-1 under the Securities Act, to register the resale of 18,000,000 Common Shares, including the Commitment Shares and Common Shares issuable pursuant to the pre-paid purchases (the "**Registration Statement**"). If the Registration Statement was declared effective within 90 days of the Initial Closing Date and no default has occurred, and if requested by the Company, Streeterville would fund $1,000,000 for a second pre-paid purchase. The Registration Statement was declared effective on February 6, 2025.

Within a committed two-year period, and subject to certain specified conditions, the Company may request the issuance of additional pre-paid purchases to Streeterville, with each purchase amount being no less than $250,000, provided that the total outstanding balance of all pre-paid purchases does not exceed $3,000,000.

The proceeds from the pre-paid purchases were and are expected to be used for working capital and other corporate purposes. However, $100,000 from the initial pre-paid purchase funding, and 15% of the funding from subsequent pre-paid purchases, shall be used to repay the indebtedness under the secured promissory note issued to Streeterville in June 2024 with an original principal amount of $6,470,000.

Following the funding of each pre-paid purchase, Streeterville has the right, but not the obligation, to purchase from the Company its Common Shares not exceeding (i) the outstanding balance of the funded amount and (ii) 9.99% beneficial ownership of the Company's outstanding Common Shares. The purchase price of the Common Shares will be the lower of (i) $1.50 or (ii) 90% of the Company's lowest daily volume weighted average trading price (the "**VWAP**") during the ten consecutive trading days immediately prior to the purchase notice date, but not less than the floor price, which is equal to 20% of the "Minimum Price" as defined under Nasdaq Listing Rule 5635(d) prior to the applicable closing. Under the Streeterville Securities Purchase Agreement, the Company agreed that, if applicable, it will seek shareholder approval for the issuance of common shares up to the Total Commitment Amount (the "**Required Shareholder Approval**"), and until such approval is obtained, the Company will not request additional pre-paid purchases that may cause the total amount of Common Shares issuable to exceed the limits set under Nasdaq Listing Rule 5635(d) (the "**Exchange Cap**"). However, since the Company is no longer listed on Nasdaq, the Required Shareholder Approval and Exchange Cap no longer apply.

The outstanding pre-paid purchases, unless reduced by the Company's sale of Common Shares to Streeterville as described, will remain outstanding and may be repaid in cash at the Company's option. There is no maturity date for the outstanding balance of the pre-paid purchases. Additionally, if certain triggering events occur, including (a) the VWAP of the Company's Common Shares falling below the floor price for at least five trading days within a seven-trading-day period, or (b) the Company having issued 75% of the shares under the Exchange Cap if an Exchange Cap applies, the Company must make monthly cash repayments of $350,000 in principal plus any accrued unpaid interest until the outstanding balance is fully repaid or the triggering event conditions are resolved. In an event of default as specified in the pre-paid purchase, Streeterville may accelerate repayment, requiring the outstanding balance to become immediately due, with a 10% increase to the principal and interest accruing at a rate of 18% per annum.

Under the Streeterville Securities Purchase Agreement, the Company has received an aggregate of $4,400,000 from Streeterville out of the Total Commitment Amount of $10,000,000, resulting in an outstanding principal balance of $4,708,000, excluding any accrued interest and prior to any purchase of common shares discussed below. Of the $4,400,000 received, a total of $460,000 has been used to repay the indebtedness under the secured promissory note issued to Streeterville in June 2024 with an original principal amount of $6,470,000.

As of July 21, 2025, Streeterville has purchased, and the Company has issued, a total of 65,068 (8,133,614 pre-reverse split) Common Shares to satisfy pre-paid purchases made through this date, based on the pricing formula described in the Streeterville Securities Purchase Agreement, and the outstanding principal balance has been reduced to $3,158,000, with an additional $147,370 in accrued interest.

**Streeterville June 2024 Note and Second Amendment to Note**

On June 26, 2024, Grafiti Holding and Streeterville entered into a note purchase agreement (the "**Note Purchase Agreement**"), pursuant to which Grafiti Holding sold a secured promissory note (the "**Note**") in an aggregate original principal amount of $6,470,000 in a private offering in reliance on exemptions from registration under applicable securities laws. The Note and the Note Purchase Agreement were amended by Amendment No. 1 as of October 31, 2024.

The Note carries an original issue discount of $1,450,000 and $20,000 of issuance costs to cover legal, accounting, due diligence, monitoring and other transaction costs. On the same day, Streeterville paid the purchase price of $5,000,000 as follows: (a) $1,150,000 to Grafiti Holding; (b) $350,000 to Damon Motors as a loan from Grafiti Holding to Damon Motors; and (c) $3,500,000 into escrow, which was distributed to Grafiti Holding upon satisfaction of certain conditions including the consummation of the Business Combination and the listing of the post-closing company's Common Shares on Nasdaq. Additionally, starting on the earlier of 13 months after the closing of the Business Combination or January 1, 2026, Streeterville may require the borrower to redeem up to one-sixth of the Note's initial principal and accrued interest monthly, and any unexercised redemption amounts can be carried over to future months.

In connection with the Streeterville loan transaction, Damon Motors Corporation, a Delaware corporation, a wholly-owned subsidiary of Damon Motors (the "**Damon Subsidiary**"), and Damon Motors, each entered into a Guaranty, dated as of June 26, 2024, whereby Damon Motors and the Damon Subsidiary guaranteed the performance of Grafiti Holding's obligations under the Note. Additionally, Grafiti Holding's obligations under the Note are secured by a lien on the promissory note issued by Damon Motors to Grafiti Holding and all related claims, rights and interests in such note issued by Damon Motors, pursuant to a Security Agreement between Streeterville and Grafiti Holding, dated June 26, 2024.

On February 27, 2025, the Company and Streeterville entered into a Second Amendment (the "**Note Amendment**") to the Note originally issued by the Company to Streeterville on June 26, 2024, in an original principal amount of $6,470,000.

Pursuant to the Note Amendment, the parties have agreed to amend the Note to grant Streeterville the right to convert, from time to time at its election, all or any portion of the outstanding balance of the Note into Common Shares, no par value, of the Company (the "**Conversion Shares**"). The number of Conversion Shares deliverable under a conversion notice will be equal to the amount of the outstanding balance of the Note being converted, divided by the conversion price, which is 90% of the lowest VWAP of the Company's common shares reported by Bloomberg during the ten trading days preceding the delivery date of a conversion notice.

The Note Amendment contains an ownership limitation, pursuant to which the Company shall not effect any issuance of Conversion Shares to the extent that such issuance would cause Streeterville, together with its affiliates, to beneficially own a number of Common Shares exceeding 9.99% of the number of Common Shares outstanding on such date, including the Common Shares issuable upon such issuance.

Upon the closing of the underwritten registered offering on March 21, 2025 (the "**March Offering**"), the outstanding principal amount was partially repaid and reduced to $4,491,700, and the Note Floor Price was adjusted to $3.1375 (pre-reverse stock split - $0.0251). However, we expect that the Floor Price will be further adjusted to $0.10 upon the first closing of any Common Shares sold under this Offering.

As of July 21, 2025, the total outstanding balance under the Note consists of $4,491,700 in principal and $668,527 in accrued interest, which are convertible into an aggregate of 51,602,270 Common Shares, assuming a conversion price equal to $0.10 upon the first closing of any Common Shares sold under this Offering.

**Implications of Being a Foreign Reporting Issuer**

Damon qualifies as a "foreign private issuer," as defined in Rule 3b-4 under the Exchange Act in the United States, based on the applicable criteria as of the last business day of the Company's most recently completed third fiscal quarter, ended March 31, 2025. Notwithstanding the Company's qualification as a foreign private issuer, the Company has voluntarily chosen to file with the SEC periodic and current reports and registration statements on forms prescribed for U.S. domestic issuers, including annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and registration statements on Form S-1, including this Offering Circular, instead of filing on the reporting and registration forms available to foreign private issuers.

Although the Company has voluntarily chosen to file periodic reports and current reports, as well as registration statements, on U.S. domestic issuer forms, the Company will maintain its status as a foreign private issuer. Accordingly, as a foreign private issuer, the Company remains exempt from the U.S. federal proxy rules pursuant to Section 14 of the Exchange Act and Regulations 14A and 14C thereunder, Regulation FD, and its officers, directors, and principal shareholders are not subject to the reporting and short-swing profit recovery provisions contained in Section 16 of the Exchange Act. See further discussion in the section "*Foreign Private Issuer Status*" in "*Management*" on page 109.

**Emerging Growth Company**

Damon is an "emerging growth company," as defined in Section 2(a) of the Securities Act, as modified by the United States Jumpstart Our Business Startups Act of 2012 (or the "**JOBS Act**"). As such, Damon is eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not "emerging growth companies" including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements and exemptions from the requirements of holding a non-binding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. If some investors find our securities less attractive as a result, there may be a less active trading market for our securities and the prices of our securities may be more volatile.

In addition, Section 107 of the JOBS Act also provides that an "emerging growth company" can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an "emerging growth company" can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. Damon intends to take advantage of the benefits of this extended transition period.

Damon will remain an emerging growth company until the earlier of: (1) the last day of the fiscal year (a) following the fifth anniversary of the completion of the initial public offering of our securities, (b) in which we have total annual gross revenue of at least $1.235 billion, or (c) in which we are deemed to be a large accelerated filer, which means the market value of our common equity that is held by non-affiliates exceeds $700 million as of the end of the prior fiscal year's second fiscal quarter; and (2) the date on which we have issued more than $1.00 billion in non-convertible debt securities during the prior three-year period. References herein to "emerging growth company" have the meaning associated with it in the JOBS Act.

**Smaller Reporting Company**

Damon is a "smaller reporting company" as defined in Item 10(f)(1) of Regulation S-K. Smaller reporting companies may take advantage of certain reduced disclosure obligations, including, among other things, providing reduced executive compensation disclosure. Damon will remain a smaller reporting company until the last day of the fiscal year in which (1) the market value of its common equity held by non-affiliates exceeds $700 million as of the prior September 30<sup>th</sup> or (2) the market value of its common equity exceeds $250 million and its annual revenues exceeds $100 million during such fiscal year. As a foreign private issuer, Damon can only use the scaled disclosure requirements available to a smaller reporting company if it continues to file periodic and current reports and registration statements under domestic issuer forms and rules and provides financial statements in accordance with U.S. GAAP, which it has voluntarily chosen to do.

**THE OFFERING**

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| | |
|:---|:---|
| **Shares Offered:** | Up to 300,000,000 Common Shares without par value. |
| **Offering Price; Minimum Investment:** | The price per Common Share in this Offering is $0.10 (exclusive of the Investor Processing Fee to help us offset the Investor Transaction Fees and costs of performing this Offering) for gross proceeds of up to $30,000,000.00<br>The minimum amount you may invest in this Offering is $1,000.00 for 10,000 Common Shares, exclusive of any Transaction Fee, and any additional purchases must be made in increments of at least $1,000.00. However, we reserve the right to waive this minimum in our sole discretion. |
| **Shares of Common Stock Outstanding Immediately Before the Offering:** | 19,603,815 Common Shares. |
| **Shares of Common Stock Outstanding Immediately After the Offering:** | 319,603,815 Common Shares. |
| **Use of Proceeds:** | We plan to use the net proceeds of this Offering for working capital and general corporate purposes, including research and development, as well as marketing and sales of our products, and to repay the outstanding balance of the Streeterville June 2024 Note. See "*Use of Proceeds*" herein for more information. |
| **Investor Suitability Standards:** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Offering is open to U.S. residents and to non-U.S. persons, other than Canadians, except where participation would be unlawful or prohibited by U.S. sanctions. Each investor must be at least 18 years of age, or the age of majority in the investor's jurisdiction of residence and have the legal capacity to enter into a binding agreement. All investors must pass customary anti-money-laundering, know-your-customer, Office of Foreign Assets Control and other required background screening prior to acceptance of their subscription. The maximum amount an investor may invest in our Common Shares in any 12-month period depends on their status as an accredited investor, as that term is defined in Rule 501(a) of Regulation D, promulgated under the Securities Act. Specifically:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● *Accredited Investors*: No investment limitation; <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● *Non-Accredited Natural Persons*: The greater of 10% of (i) your annual income or (ii) your net worth, each calculated together with your spouse or spousal equivalent and excluding the value of your primary residence; and<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● *Non-Accredited Entity*: 10% of the greater of (i) the entity's annual revenue or (ii) its net assets at fiscal year-end.<br>These investor-suitability standards are subject to periodic review and may be amended to reflect changes in Regulation A, sanctions regimes, or internal company policies. |
| **Escrow Account:** | Until we perform a Closing, your investment funds will be held in our escrow account with Enterprise Bank & Trust, our Escrow Agent for the Offering. See "*Plan of Distribution*" herein for more information. |

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| | |
|:---|:---|
| **Regulation A Offering Limitations:** | Regulation A Rule 251(a)(2) limits us to an aggregate of $75,000,000 in any rolling 12-month period during the three years following qualification of this Offering, meaning that the maximum dollar amount of additional Common Shares we may offer under Regulation A will increase over time as prior sales fall outside the applicable twelve-month look-back period. Following SEC qualification of this Offering Circular and the Offering Statement of which it forms a part (which is referred to herein as the Offering Circular and Offering Statement, respectively), and as additional capacity becomes available, we may file one or more post-qualification amendments under Rule 252(f)(2)(ii) to seek the qualification of such additional Common Shares for sale in this Offering. However, we will not sell any additional Common Shares until the SEC qualifies any such amendment.<br>Prospective investors should also note that we may file offering circular supplements from time to time to raise the price per Common Share in this Offering by up to 20% above the most recently qualified price; provided that any increase exceeding 20% or any fundamental change to the information in a qualified offering circular will require a post-qualification amendment that must be filed with and qualified by the SEC.<br>The Offering will terminate on the first to occur of (i) the date on which all 300,000,000 Common Shares have been sold, (ii) the date which is one year from this Offering being qualified by the SEC, or (iii) the date on which this offering is earlier terminated by us, in our sole discretion, with respect to the Company's shares offered in this offering, regardless of the amount of capital raised . See "*Plan of Distribution*" herein for more information.<br>|
| **Risk Factors:** | Investing in our Common Shares involves a high degree of risk. Each investor should be able to bear a complete loss of their investment and should carefully consider risks associated with our business and this Offering of Common Shares before deciding to invest. See "*Risk Factors*" herein for more information. |
| **Secondary Market Public Trading:** | The Company's Common Shares are traded on the OTCID Basic Market under the symbol "DMNIF", however, as a result of our recent reverse stock split effective on July 3, 2025, our current trading symbol is "DMNID" until August 1, 2025, when our symbol will revert to "DMNIF". |
| **Transfer Agent:** | The transfer agent and registrar for our Common Shares is Odyssey Transfer & Trust Company. |
| **Resale Restrictions for Canadians** | The share certificate or ownership statement representing the Common Shares to be issued any Canadian investors in the Offering will bear a legend restriction notation in accordance with Multilateral Instrument 51-105 – Issuers Quoted in the U.S. Over-the-Counter Markets. See "*Shares Eligible for Future Sale*". |

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*An investment in our securities involves a high degree of risk. You should carefully consider the following risk factors, together with the other information contained in this Offering Circular, before purchasing our securities. We have listed below, not necessarily in order of importance or probability of occurrence, what we believe to be the most significant risk factors applicable to us, but they do not constitute all of the risks that may be applicable. Any of the following factors could harm our business, financial condition, results of operations or prospects, and could result in a partial or complete loss of your investment. Some statements in this Offering Circular, including statements in the following risk factors, constitute forward-looking statements. Please refer to the section titled "Cautionary Statement Regarding Forward-Looking Statements" herein.*

**Risk Factors**

You should carefully consider the risks and uncertainties described below and the other information in this Offering Circular before making an investment in our Common Shares. Our business, financial condition, results of operations or prospects could be materially and adversely affected if any of these risks occurs, and as a result, the market price of our Common Shares could decline and you could lose all or part of your investment. This Offering Circular also contains forward-looking statements that involve risks and uncertainties. See "*Cautionary Statement Regarding Forward-Looking Statements*" herein. Our actual results could differ materially and adversely from those anticipated in these forward-looking statements as a result of certain factors, including those set forth below.

**Risks Related to this Offering and Ownership of Our Common Shares**

***We have broad discretion in the use of the net proceeds from this Offering and may not use them effectively.***

Our management will have broad discretion in the application of the net proceeds, including for any of the purposes described in the section of this Offering Circular entitled "*Use of Proceeds*." You will be relying on the judgment of our management with regard to the use of these net proceeds, and you will not have the opportunity, as part of your investment decision, to assess whether the net proceeds are being used appropriately. The failure by our management to apply these funds effectively could result in financial losses that could have a material adverse effect on our business, cause the price of our securities to decline and delay the development of our product candidates. Pending the application of these funds, we may invest the net proceeds from this Offering in a manner that does not produce income or that loses value.

***The public offering price will be set by our Board and does not necessarily indicate the actual or market value of our Common Shares.***

Our Board, or a committee designated by the Board, will approve the public offering price and other terms of this Offering after considering, among other things: the current market price of our Common Shares; trading prices of our Common Shares over time; the volatility of our Common Shares; our current financial condition and the prospects for our future cash flows; the availability of and likely cost of capital of other potential sources of capital; the characteristics of interested investors; and market and economic conditions at the time of the Offering. The public offering price is not intended to bear any relationship to the book value of our assets or our past operations, cash flows, losses, financial condition, net worth or any other established criteria used to value securities. The public offering price may not be indicative of the fair value of the Common Shares.

***Our stock price is volatile and there is a limited market for our shares.***

Our Common Shares have only recently become publicly traded. The market price of our Common Shares has been volatile and could continue to fluctuate widely in price in response to various factors, many of which are beyond our control. In addition, the securities markets have from time to time experienced significant price and volume fluctuations that are unrelated to the operating performance of publicly traded companies. While these fluctuations have often been unrelated to the operating results of such companies and in recent times have been exacerbated by investors' concerns stemming from geopolitical issues and changes in macroeconomic conditions, factors that may affect the volatility of our stock price include the following:

● our ability to execute our business plan;

● changes in our industry, including the announcement of new products, services, or technological innovations by us or our competitors;

● competitive pricing pressures;

● our ability to obtain working capital financing;

● additions or departures of key personnel, including members of our executive leadership;

● sales of our Common Shares;

● operating results that fall below expectations;

● regulatory developments;

● economic and other external factors, including changes in macroeconomic conditions, including inflationary pressures;

● period-to-period fluctuations in our financial results;

● our inability to develop or acquire new or needed technologies or successfully integrate acquired businesses;

● the public's response to press releases or other public announcements by us or third parties, including filings with the SEC;

● changes in financial estimates or ratings by any securities analysts who follow our Common Shares, our failure to meet these estimates or failure of those analysts to initiate or maintain coverage of our Common Shares;

● the development and sustainability of an active trading market for our Common Shares;

● any future sales of our Common Shares by our officers, directors and significant shareholders, or the sale or attempted sale of a large amount of our Common Shares, or the appearance of such sales, including sales of Common Shares in this Offering;

● terrorist attacks, natural disasters and the effects of climate change, regional and global conflicts, sanctions, laws and regulations that prohibit or limit operations in certain jurisdictions, public health crises or other such events impacting countries where we have operations; and

● actual or purported "short squeeze" trading activity.

Our Common Shares were recently delisted from Nasdaq and began trading on the OTC Pink Current Market (now the OTCID Basic Market) on May 20, 2025, where trading volumes has historically been limited. See further discussion under the risk factors "*Our common shares have recently been delisted from Nasdaq and are currently traded on the OTCID Basic Market, which may adversely affect the market price and liquidity of our shares and limit our ability to raise additional* capital" below. The public trading market for our Common Shares depends on a marketplace of willing buyers and sellers at any given time, which in turn depends on factors outside of the Company's control, including general economic and market conditions and the decisions of individual investors. As such, a holder of our Common Shares who wishes to sell his or her shares may not be able to do so immediately or at a price acceptable to them.

***We have a history of operating losses and we will need to raise capital in addition to capital raised in this Offering to fund our planned operations and, additionally, there is no assurance that we will be able to achieve profitability, raise additional financing or continue as a going concern.***

Our financial statements have been prepared on a going-concern basis under which an entity is considered to be able to realize its assets and satisfy its liabilities in the ordinary course of business. However, the audited consolidated financial statements of Grafiti Holding for the years ended June 30, 2024, 2023, and 2022 and Damon Motors for the years ended June 30, 2024, 2023 and 2022 include a going concern explanatory paragraph in the independent auditor reports.

We have a history of operating losses and have accumulated a deficit of $142,962,099 as of March 31, 2025, and expect to incur additional future losses. The ability of our company to continue as a going concern is dependent upon our attaining and maintaining profitable operations and raising additional capital as needed, but there can be no assurance that we will be able to raise sufficient financing. After completion of this Offering, we will need to raise additional funds to continue our planned operations.

Our ability to generate positive cash flow from operations is dependent upon sustaining targeted cost reductions and generating sufficient revenues. While we have implemented measures to reduce non-essential costs, these reductions alone are insufficient to offset our operating losses. Our management is evaluating options and strategic transactions and continuing to market and promote our product and service offerings to increase revenues, however, there is no guarantee that these efforts will be successful or that we will be able to achieve or sustain profitability. We have funded our operations primarily with private offerings and debt financing. Our history of operating losses and cash uses, our projections of the level of cash that will be required for our operations to reach profitability, may impair our ability to raise capital on terms that we consider reasonable and at the levels that we will require over the coming months. We cannot provide any assurance that we will be able to secure additional funding from public or private offerings or debt financings on terms acceptable to us, if at all. If we are unable to obtain the requisite amount of financing needed to fund our planned operations, it would have a material adverse effect on our business and ability to continue as a going concern, and we may have to curtail, or even to cease, certain operations. If additional funds are raised through the issuance of equity securities or convertible debt securities, it will be dilutive to our shareholders and could result in a decrease in our share price.

***If securities or industry analysts do not publish research or reports about our business, or publish negative reports about our business, our share price and trading volume could decline.***

The trading market for our Common Shares will depend, in part, on the research and reports that securities or industry analysts publish about us or our business. We do not have any control over these analysts or the content that they publish about us. At present, there may be few or no securities or industry analysts providing coverage of our Common Shares. If our financial performance fails to meet any available analyst estimates, or one or if any analysts who cover us downgrade our Common Shares or change their opinion of our Common Shares, our share price would likely decline.

***We are eligible to be treated as an "emerging growth company" as defined in the JOBS Act, and we cannot be certain if the reduced disclosure requirements applicable to emerging growth companies will make our Common Shares less attractive to investors.***

We are an "emerging growth company", as defined in the JOBS Act. For as long as we continue to be an emerging growth company, we may take advantage of exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies, including (1) not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, (2) reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements and (3) exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. In addition, as an emerging growth company, we are only required to provide two years of audited financial statements and two years of selected financial data in this Offering Circular. We could be an emerging growth company for up to five years, although circumstances could cause us to lose that status earlier, including if the market value of our common shares held by non-affiliates exceeds $700.0 million as of any June 30 before that time or if we have total annual gross revenue of $1.07 billion or more during any fiscal year before that time, in which cases we would no longer be an emerging growth company as of the following December 31 or, if we issue more than $1.0 billion in non-convertible debt during any three-year period before that time, we would cease to be an emerging growth company immediately. Even after we no longer qualify as an emerging growth company, we may still qualify as a "smaller reporting company" which would allow us to take advantage of many of the same exemptions from disclosure requirements, including not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, not being required to provide selected financial data in the registration statements and periodic reports that we file with the SEC, and reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements. We cannot predict if investors will find our common shares less attractive because we may rely on these exemptions. If some investors find our common shares less attractive as a result, and if our common shares become publicly traded, such trading market may be less active than it otherwise could be if we were not to take advantage of such exemptions, and our share price may be more volatile.

Our independent registered public accounting firm will not be required to formally attest to the effectiveness of our internal control over financial reporting until the later of our second annual report or the first annual report required to be filed with the SEC following the date we are no longer an "emerging growth company" as defined in the JOBS Act. We cannot assure you that there will not be material weaknesses or significant deficiencies in our internal controls in the future.

Under the JOBS Act, emerging growth companies can also delay adopting new or revised accounting standards until such time as those standards apply to private companies. We have irrevocably elected to take advantage of this extended transition period, and therefore, our financial statements may not be comparable to those of companies that comply with such new or revised accounting standards.

***As a foreign private issuer, we are exempt from certain U.S. securities laws and regulations that apply to U.S. domestic issuers, which may afford less protection to shareholders.***

Although we have voluntarily chosen to file periodic reports, current reports, and registration statements using U.S. domestic issuer forms, we will maintain our status as a foreign private issuer under U.S. securities laws. As a result, we are exempt from certain requirements applicable to U.S. domestic issuers, including:

● The proxy rules set forth in Section 14 of the Exchange Act and Regulations 14A and 14C thereunder, meaning we are not required to solicit proxies or provide proxy statements in compliance with these U.S. rules. Instead, we will follow applicable Canadian proxy solicitation rules and practices;

● Regulation FD, which prohibits selective disclosure of material nonpublic information to certain market participants; and

● The reporting and short-swing profit recovery provisions of Section 16 of the Exchange Act, which require officers, directors, and certain significant shareholders of U.S. domestic issuers to report transactions in the company's equity securities and to disgorge any profits realized from short-swing trading transactions.

As a result of these exemptions, shareholders may not have the same rights, access to information, and protections as they would if were subject to all of the obligations of a U.S. domestic issuer.

***We may lose our foreign private issuer status in the future, which could result in significant additional costs and expenses.***

The determination of foreign private issuer status is made annually on the last business day of an issuer's most recently completed second fiscal quarter, and, accordingly, the next determination will be made with respect to the Company on the last business day of December 2025. If the Company loses its foreign private issuer status on this determination date, then, beginning on the first day of the fiscal year following the determination date, it would have to comply with U.S. federal proxy rules and Regulation FD, and its officers, directors and principal shareholders would become subject to the reporting and short-swing profit disclosure and recovery provisions of Section 16 of the Exchange Act. As a U.S. listed public company that is not a foreign private issuer, the Company may incur significant additional legal, accounting and other expenses that it would not incur as a foreign private issuer.

***We have identified material weaknesses in our internal control over financial reporting. If we are unable to remediate these weaknesses, or otherwise fail to maintain proper and effective internal controls, our ability to produce timely and accurate financial statements could be impaired, which could adversely affect our operating results, our ability to operate our business, our share price and access to the capital markets.***

We have identified material weaknesses in our internal control over financial reporting, leading to the conclusion that our internal control over financial reporting and disclosure controls and procedures were not effective as of March 31, 2025. We recently amended and restated our quarterly financial statements for the three and six months ended December 31, 2024, due to an accounting error in which transaction costs incurred in connection with the Business Combination were understated by $2,300,000. Upon re-evaluation, management concluded that the error arose from material weaknesses in our internal control over financial reporting, including ineffective controls over period-end financial disclosure, inadequate monitoring activities to assess the operation of internal controls, insufficient controls for financial information processing and reporting, and a lack of resources with the requisite skills for financial reporting under U.S. GAAP. Our inability to remediate these material weaknesses, the discovery of additional weaknesses, or failure to establish and maintain effective disclosure controls and internal control over financial reporting could adversely affect our results of operations, share price, and investor confidence in our company.

Section 404 of the Sarbanes-Oxley Act of 2002 requires that companies evaluate and report on the effectiveness of their internal control over financial reporting. As previously disclosed in more detail, we have identified material weaknesses as of March 31, 2025. Due to the material weaknesses in our internal control over financial reporting, we have also concluded our disclosure controls and procedures were not effective as of March 31, 2025.

Failure to have effective internal control over financial reporting and disclosure controls and procedures can impair our ability to produce accurate financial statements on a timely basis and has led and could again lead to a restatement of our financial statements. If, as a result of the ineffectiveness of our internal control over financial reporting and disclosure controls and procedures, we cannot provide reliable financial statements, our business decision processes may be adversely affected, our business and results of operations could be harmed, investors could lose confidence in our reported financial information and our ability to obtain additional financing, or additional financing on favorable terms, could be adversely affected.

Our management has taken action to begin remediating the material weaknesses; however, certain remedial actions have not started or have only recently been undertaken, and while we expect to continue to implement our remediation plans throughout the fiscal year ending June 30, 2025, we cannot be certain as to when remediation will be fully completed. In addition, we could in the future identify additional internal control deficiencies that could rise to the level of a material weakness or uncover other errors in financial reporting. During the course of our evaluation, we may identify areas requiring improvement and may be required to design additional enhanced processes and controls to address issues identified through this review. In addition, there can be no assurance that such remediation efforts will be successful, that our internal control over financial reporting will be effective as a result of these efforts or that any such future deficiencies identified may not be material weaknesses that would be required to be reported in future periods.

If we fail to remediate these material weaknesses and maintain effective disclosure controls and procedures or internal control over financial reporting, we may not be able to rely on the integrity of our financial results, which could result in inaccurate or additional late reporting of our financial results, as well as delays or the inability to meet our future reporting obligations or to comply with SEC rules and regulations. This could result in claims or proceedings against us, including by shareholders or the SEC. The defense of any such claims could cause the diversion of the Company's attention and resources and could cause us to incur significant legal and other expenses even if the matters are resolved in our favor.

 ****

***We do not intend to pay cash dividends to our shareholders.***

We do not intend to pay cash dividends to our shareholders. We currently intend to retain any future earnings for funding growth and, therefore, do not expect to pay any cash dividends in the foreseeable future.

***Indemnification of our officers and directors may cause us to use corporate resources to the detriment of our shareholders.***

Our Articles eliminate the personal liability of our directors for monetary damages arising from a breach of their fiduciary duty as directors to the fullest extent permitted by British Columbia law. This limitation does not affect the availability of equitable remedies, such as injunctive relief or rescission. Until October 17, 2028, our Articles require us to indemnify our directors and officers to the fullest extent permitted by British Columbia law, including in circumstances in which indemnification is otherwise discretionary under British Columbia law.

Under British Columbia law, we may indemnify our directors or officers or other persons who were, are or are threatened to be made a named defendant or respondent in a proceeding because the person is or was our director, officer, employee or agent, if we determine that the person:

● conducted himself or herself in good faith, reasonably believed, in the case of conduct in his or her official capacity as our director or officer, that his or her conduct was in our best interests, and, in all other cases, that his or her conduct was at least not opposed to our best interests; and

● in the case of any criminal proceeding, had no reasonable cause to believe that his or her conduct was unlawful.

These persons may be indemnified against expenses, including attorneys' fees, judgments, fines, excise taxes and amounts paid in settlement, actually and reasonably incurred by the person in connection with the proceeding. If the person is found liable to the corporation, no indemnification will be made unless the court in which the action was brought determines that the person is fairly and reasonably entitled to indemnity in an amount that the court will establish.

***Reporting company compliance may make it more difficult to attract and retain officers and directors.***

The Sarbanes-Oxley Act and rules implemented by the SEC have required changes in corporate governance practices of public companies. As a reporting company, these rules and regulations will increase our compliance costs and make certain activities more time consuming and costly. As a reporting company, these rules and regulations may make it more difficult and expensive for us to maintain our director and officer liability insurance and we may be required to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage. As a result, it may be more difficult for us to attract and retain qualified persons to serve on our board of directors or as executive officers, and to maintain insurance at reasonable rates, or at all.

***Our Common Shares have recently been delisted from Nasdaq and are currently traded on the*** ***OTCID Basic Market, which may adversely affect the market price and liquidity of our shares and limit our ability to raise additional capital.***

On May 20, 2025, our Common Shares were delisted from the Nasdaq Global Market and began trading on the OTC Pink Current Market maintained by OTC Markets Group Inc., where trading volume has historically been limited and may remain so. The OTC Pink Current Market became the OTCID Basic Market effective as of July 1, 2025. We are also seeking to have our shares posted for trading on the OTCQB Venture Market ("**OTCQB**"), though no assurance can be provided that we will be able to satisfy the criteria for trading on the OTCQB or that the staff of OTC Markets will approve the posting of the our shares for trading on the OTCQB.

The delisting from Nasdaq has made trading in our Common Shares more difficult for investors, which may result in reduced liquidity and increased price volatility. Without a Nasdaq listing, investors may have difficulty obtaining current price quotations, and trading may be limited, sporadic, and occur at depressed prices. Additionally, the loss of a national exchange listing has negatively impacted our visibility and reputation in the capital markets, making it more challenging to attract investor interest and raise additional capital. The absence of an exchange listing may also adversely affect the valuation and acceptance of our common shares in connection with potential business combinations, strategic transactions, or future financing activities.

Additionally, following the delisting and given our current stock price, our Common Shares are deemed "penny stock" under Rule 15g-9 of the Exchange Act. This designation imposes additional sales practice requirements on broker-dealers, which could further limit the liquidity and marketability of our shares and restrict the ability of investors to resell their shares in the secondary market. We are also subject to increased compliance burdens under state securities laws in connection with any sales of our securities, further limiting our access to capital markets and increasing compliance costs.

While our Common Shares are currently quoted on the OTCID Basic Market, there can be no assurance that an active and liquid trading market will develop or be sustained. Although we are in the process of applying to upgrade to the OTCQB, there is no guarantee that we will meet the eligibility requirements or that our application will be approved. If we are unable to establish and maintain a robust trading market on a market operated by OTC Markets, our ability to raise capital, continue as a going concern, and maintain investor confidence could be materially and adversely affected. In addition, failure to maintain a trading market for our common shares may trigger events of default or acceleration under our existing financing arrangements, including those with Streeterville. Such defaults could result in immediate cash payment obligations, placing further strain on our liquidity and potentially jeopardizing our ability to continue operations.

***Our stock price has been volatile, and the issuance of shares upon the exercise of Series A Warrants has resulted in significant dilution. Additional issuances under our current financing arrangements with Streeterville or other new issuances could further depress the market price of our Common Shares.***

Following the closing of the March Offering, investors began exercising their Series A Warrants on an alternate cashless basis, resulting in the issuance of 18,347,300 (pre-reverse split - 2,293,412,544) Common Shares by the Company. As of July 21, 2025, 19 Series A Warrants (pre-reverse split – 2,352 Series A Warrants) remain outstanding, which may result in the issuance of up to 19 additional Common Shares (pre-reverse split – 2,352 additional Common Shares) having an exercise price of $24.38 per Common Share (pre-reverse split - $0.195).

In connection with the March Offering, the floor price under the June 2024 Note was adjusted to $0.0251, however, as a result of the reverse stock split on July 3, 2025, the adjusted floor price is $3.1375. We expect that the Floor Price will be further adjusted to $0.10 upon the first closing of any Common Shares sold under this Offering. As of July 21, 2025, the outstanding principal amount was partially repaid and reduced to $4,491,700, with an additional $668,527 in accrued unpaid interest, which may result in an issuance of 51,602,270 Common Shares, assuming a conversion price equal to $0.10 upon the first closing of any Common Shares sold under this Offering.

Additionally, as of July 21, 2025, the outstanding principal balance under the December 2024 SPA was $3,158,000, with an additional $147,370 in accrued unpaid interest. Streeterville may make purchases of Common Shares in satisfaction of outstanding pre-paid purchases pursuant to the pricing formula set forth in the December 2024 SPA. If the Company receives additional funding under the total $10,000,000 commitment or if Streeterville elects to purchase Common Shares in satisfaction of the outstanding balance under the December 2024 SPA, further issuances of Common Shares may occur.

In addition to these financing arrangements, the Company may issue additional Common Shares to settle outstanding obligations, raise capital or compensate employees and service providers. The Company is generally not restricted from issuing additional Common Shares or securities convertible into or exchangeable for Common Shares. Under our Articles and the BCBCA we are authorized to issue an unlimited number of Common Shares. Any actual or anticipated future issuances, particularly those at prices below the current market price, could significantly dilute existing shareholders, depress our share price, and impair our ability to raise capital.

**Risks Relating to Our Business**

***The Company has incurred significant costs associated with the Business Combination and will continue to incur significant costs associated with operating as a public reporting company.***

The Company has incurred substantial, non-recurring costs related to the consummation of the Business Combination and expects to continue incurring significant expenses as it operates as a public reporting company. These costs include legal, financial advisory, accounting and auditing, banking, and consulting fees, as well as expenses for regulatory filings, SEC fees, printing, and mailing. Additionally, the Company may incur further costs to retain key employees and engage new employees to support its transition to operating as a public reporting entity. These expenses are either the responsibility of the party incurring them during the Business Combination or will be paid by the Company following the Closing.

***The Company is an early-stage company with a history of losses and expects to incur significant expenses and continuing losses for the foreseeable future. There is no guarantee that the Company will achieve or sustain profitability.***

The Company has incurred losses since its inception and expects to continue to incur operating and net losses each quarter until such time as it achieves sufficient sales and production capacity at an assembly facility, which is not expected until 2026. Even if the Company is able to successfully develop, produce and sell its vehicles, there can be no assurance that they will be commercially successful. The Company's potential profitability is dependent upon the successful development, production, commercialization and acceptance of its vehicles, which has not yet occurred, and may never occur.

Prior to the closing, Grafiti Holding incurred a net loss of approximately US$1.3 million for the fiscal year ended June 30, 2024 and approximately US$1.6 million during the quarter ended September 30, 2024, and had an accumulated deficit of approximately US$3.3 million as of September 30, 2024. Damon Motors incurred a net loss of approximately US$34.0 million for the fiscal year ended June 30, 2024 and approximately $7.4 million during the quarter ended September 30, 2024, and had an accumulated deficit of approximately $148.0 million as of September 30, 2024. Following the closing, we have continued to incur loss and anticipate generating a significant loss for the current fiscal year, due to the factors discussed below. As of March 31, 2025, we have accumulated a deficit of $142,962,099.

The Company expects to continue to incur significant expenditures in connection with the execution of its business strategy, including, without limitation, as a result of: continuing to design and develop and beginning to manufacture its existing and planned vehicles; equipping and expanding its pilot, support research and development and mass-production manufacturing facilities to produce its vehicles potentially in the US and international locations, and subsequently ramping-up production capacity at such facilities; building up inventories of parts and components for its vehicles; developing or securing personal mobility charging partnerships; expanding its design, research, development, maintenance and repair capabilities; increasing its sales and marketing activities and developing its distribution infrastructure; designing and implementing a show room network; expanding its general and administrative functions to support its growing operations.

Because it will incur the costs and expenses from these efforts before it receives any incremental revenues with respect thereto, the Company's losses in future periods may be significant. In addition, the Company may find that these efforts are more expensive than currently anticipated, including by reason of delays in product development and commercialization, or that these efforts may not result in revenues, which would further increase its losses. The Company's ability to produce revenues will depend, in part, on its ability to finalize and begin commercial start of production of its HyperSport vehicle, which is not expected to occur until 2026.

Management does not expect its SAVES distribution business to greatly expand. The Company's ability to generate positive cash flow from operations in this business is dependent upon sustaining certain cost reductions and generating sufficient revenues. Our ability to achieve profitability with respect to the SAVES distribution business is more challenging when sales slow due to adverse economic conditions, notwithstanding our cost reduction efforts, because our cost reduction efforts may not be sufficient to offset declining gross profit.

For the reasons discussed above, there is no guarantee that the Company will reach profitability in the near term or at all, which could materially and adversely affect its business, financial condition, and results of operations.

***The Company has a limited operating history which makes it difficult to evaluate its future business prospects and may increase investment risk.***

The Company's limited operating history makes evaluating its business and future prospects difficult. Damon Motors began operations in 2017 and has not yet begun mass production or the commercial delivery of its first motorcycle. If the Company does not successfully address these risks, its business, financial condition, operating results and prospects will be materially and adversely harmed. The Company has a very limited operating history and, as it attempts to transition from research and development activities to production and sales, it is difficult, if not impossible, to forecast its future results, and management has limited insight into trends that may emerge and affect its business. The Company intends to derive a substantial portion of its revenue from the sale of its electric motorcycles, none of which have reached commercialization stage to date. If actual results differ materially from management's estimates in future periods, the Company's business, financial condition, operating results and prospects may be materially adversely affected.

The Company is currently in concept phase of second vehicle, the HyperFighter, which is scheduled for delivery in 2028. The Company's motorcycles require significant investment prior to commercial introduction and may never be successfully developed, produced, commercialized or accepted. There are no assurances that the Company will be able to successfully develop its models in a timely manner, or secure future business from recreational customers.

The Company has encountered, and expects to continue to encounter, risks and uncertainties frequently experienced by early-stage companies in rapidly changing markets, including risks related to its ability to, among other things:

● design and produce safe, reliable and quality vehicles on an ongoing basis;

● build a well-recognized and respected brand;

● establish and expand its customer base;

● continue to make significant investments in research, development, manufacturing, marketing and sales;

● successfully market its vehicles and its other services;

● properly price its services and successfully anticipate the take-rate and usage of such services by users;

● improve and maintain its operational efficiency;

● maintain a reliable, secure, high-performance and scalable technology infrastructure;

● hire, integrate, retain and motivate professional and technical talent, including key members of management;

● anticipate and adapt to changing market conditions, including technological developments and changes in competitive landscape; and

● navigate an evolving and complex regulatory environment.

If the Company fails to address any or all of these risks and challenges, its business, financial condition, operating results and prospects may be materially adversely affected.

***The Company will initially depend on revenue generated from a single model of vehicle and in the foreseeable future will be significantly dependent on a limited number of models.***

The Company's personal mobility business will initially depend substantially on the sales and success of its HyperSport motorcycles, which we expect will be our only volume manufactured vehicle in the market for an extended period of time, and in the foreseeable future will be significantly dependent on a limited number of vehicles. The Company will rely on sales from the HyperSport motorcycles, among other sources of financing, for the capital that will be required to develop and commercialize those subsequent models. To the extent that (i) production of the Company's motorcycles is delayed, interrupted or reduced, (ii) the Company's product variety and motorcycles do not meet customer expectations or do not align with projected timelines, cost and volume targets or (iii) any of the Company's vehicles are not well- received by the market for any reason, the Company's revenue and cash flow would be adversely affected. In any such case, the Company may need to seek additional financing earlier than it expects, which financing may not be available to it in a timely manner and on commercially reasonable terms, or at all, and the Company's business, financial condition, operating results and prospects may be materially adversely affected.

***The Company's success will depend on its ability to economically produce its vehicles at scale, and its ability to produce vehicles of sufficient quality and appeal to customers on schedule and at a scale that is unproven.***

The Company's business success will depend in large part on its ability to economically produce, market and sell its motorcycles at sufficient capacity to meet the demands of its customers. The Company will need to scale its production capacity in order to successfully implement its business strategy, and plans to do so in the future by, among other things, establishing development and ramp-up capacity at one or more assembly facilities. The Company has no experience in mass-production of its motorcycles. The Company does not know whether it will be able to develop efficient, automated, low-cost production capabilities and processes, or whether it will be able to secure reliable sources of supply from suppliers and manufacturers, in each case that will enable it to meet the quality, price, engineering, design and production standards, as well as the production volumes, required to successfully mass market its motorcycles and meet its business objectives and customer needs.

Even if the Company is successful in developing mass-production capability and processes and can reliably source supplies in sufficient volume, it does not know whether it will be able to do so in a manner that avoids significant delays and cost overruns, including as a result of factors beyond its control, such as problems with suppliers and manufacturers, or in time to meet the commercialization schedules of future vehicles or to satisfy the requirements of its customers. The Company's ability to effectively reduce its cost structure over time is limited by the fixed nature of many of its planned expenses in the near-term, and its ability to reduce long-term expenses is constrained by its need to continue investment in its business strategy.

If the Company fails to develop and scale such mass-production capability and processes within its projected costs and timelines, the Company's business, financial condition, operating results and prospects may be materially adversely affected.

***The Company may be unable to reduce and adequately control the costs associated with operating its business.***

The Company will require significant capital to develop and grow its business and it expects to incur significant costs which will impact its profitability, including research and development expenses as new models are rolled out and existing models improved, raw material procurement costs, selling and distribution expenses as it builds its brand and markets its vehicles and general and administrative expenses as it scales its operations. In addition, the Company may incur significant costs in connection with its services and honoring its commitments under its service and warranty packages. The Company's ability to become profitable in the future will not only depend on its ability to successfully market its vehicles and other products and services, but also its ability to control its costs. If the Company is unable to design, manufacture, market, sell and distribute and service its vehicles and services in a cost-efficient manner, its business, financial condition, operating results and prospects may be materially adversely affected.

***To carry out its proposed business plan to develop, manufacture, sell and service electric motorcycles and other potential personal mobility products, the Company will require a significant amount of capital.***

The Company's capital expenditures will continue to be significant in the foreseeable future as it expands its business and its level of capital expenditures will be significantly affected by customer demand for its products and services. The fact that the Company has a limited operating history means it has limited historical data on the demand for its products and services. As a result, its future capital requirements are uncertain and actual capital requirements may be materially different from those it currently anticipates. The Company expects that it will ultimately need to seek additional equity or debt financing to finance its capital expenditures, though the timing or amount of any such capital expenditures cannot be predicted with certainty at this time. The sale of additional equity or equity-linked securities would dilute the Company's shareholders, while the incurrence of indebtedness would result in increased debt service obligations and covenants that potentially restrict its operations.

There is no assurance that such additional financings will be available to the Company in a timely manner or on terms that are favorable, or at all. The Company's ability to obtain the necessary financing to carry out its business plan is subject to a number of factors, including general market conditions and investor acceptance of its business plan. These factors may cause the timing, amount, terms and conditions of such financing to be unattractive or unavailable to the Company. If the Company is unable to secure sufficient financing if and when needed or desired, it may have to significantly reduce its spending, delay or cancel its planned activities or substantially change its current corporate structure and its business, financial condition, operating results and prospects may be materially adversely affected.

***The Company may experience significant delays in the design, manufacture, finance, regulatory approval, launch, transportation and delivery of its motorcycles and other potential personal mobility products.***

The Company's will depend in large part on its ability to execute on its plans to design, manufacture, finance, obtain regulatory approval for, launch, transport and deliver its vehicles, and any delay associated therewith could materially adversely affect the Company's business, financial condition, operating results and prospects, and could cause liquidity constraints and reputational damage.

Vehicle manufacturers often experience delays in the design, manufacture and commercial launch of new products. The Company has no experience to date in high volume manufacturing of its vehicles. Even if it is successful in developing high-volume manufacturing capability and processes and in reliably sourcing its component supply, the Company cannot guarantee that it will be able to do so in a manner that avoids significant delays and cost overruns or in time to meet its vehicle commercialization schedules or in satisfaction of customer expectations or requirements. Further, the Company will also rely on third-party suppliers for the provision and development of the key components and materials used in its vehicles. To the extent the Company's suppliers experience any delays in providing it with or developing necessary components, it could experience delays in delivering on its timelines. Further, prior to mass production of its vehicles, the Company will need such vehicles to be fully designed, engineered and approved for sale according to differing requirements, including, but not limited to, regulatory requirements, in the different jurisdictions in which it intends to commercialize them.

***The Company does not currently have arrangements in place that will allow it to fully execute its business plan.***

To sell its motorcycles and other potential personal mobility products as envisioned, the Company will need to enter into agreements and arrangements that are not currently in place. These include entering into manufacturing agreements for the Company's current and future electric personal mobility products not yet in development and acquiring or developing additional manufacturing capability, arranging for the transportation of HyperSport motorcycles, and obtaining battery and other essential supplies in the quantities that the Company requires. If the Company is unable to enter into such agreements or is only able to do so on terms that are unfavorable, the Company may not be able to fully carry out its business plans as currently contemplated or at all.

 ****

***If the Company is unable to design, develop, manufacture and sell new electric motorcycles and other potential personal mobility products and services that address additional market opportunities, its business, financial condition, operating results and prospects may suffer.***

The Company may not be able to successfully design, develop, manufacture and sell new electric motorcycles and other potential personal mobility products and services, address new market segments or develop a significantly broader customer base. To date, the Company has focused its business on the development and sale of the HyperSport HS motorcycles, which have targeted mainly affluent super sport motorcycle market. The Company will need to address additional markets and expand its customer demographic to further grow its business. If the Company fails to address additional market opportunities, its business, financial condition, operating results and prospects may be materially adversely affected.

***The Company may not be able to accurately estimate the supply and demand for its vehicles, which could result in a variety of inefficiencies in its business and hinder its ability to generate revenue. If the Company fails to accurately predict its manufacturing requirements, the Company could incur additional costs or experience delays.***

It is difficult for management to predict the Company's future revenues and appropriately budget for its expenses, and management has limited insight into trends that may emerge and affect the Company's business. The Company will be required to provide forecasts of its demand to its suppliers several months prior to the scheduled delivery of vehicles to its prospective customers. Currently, there is no historical basis for making judgments about the demand for the Company's vehicles or its ability to design, develop, manufacture and sell vehicles, or its profitability in the future. If the Company overestimates its requirements, its suppliers may have excess inventory, which indirectly would increase its costs. If the Company underestimates its requirements, its suppliers may have inadequate inventory, which could interrupt manufacturing of its vehicles and result in delays in deliveries and revenues or negatively impact its ongoing relationships with its suppliers. In addition, lead times for materials and components that its suppliers order may vary significantly and depend on factors such as the specific supplier, contract terms and demand for each component at a given time. If the Company fails to order sufficient quantities of product components in a timely manner, the delivery of vehicles to its customers could be delayed, and its business, financial condition, operating results and prospects may be materially adversely affected.

***The Company has received only a limited number of reservations for its vehicles, all of which may be cancelled and are fully refundable, and there is no assurance that such reservations will be converted into sales.***

As of July 21, 2025, Damon had 3,153 reservations for HyperSport and HyperFighter motorcycles, which were placed with fully refundable deposits. The Company's customers may cancel their reservations without penalty and for any reason until they place an order for their motorcycle, at which point the deposit becomes non-refundable and the customer is required to pay an additional non-refundable deposit. The Company has experienced cancellations in the past, and further customers may cancel their reservations for many reasons outside of its control, including changes in government subsidies and economic incentives. The potentially long wait from the time a reservation is made until the time the vehicle is delivered could also impact user decisions on whether to ultimately make a purchase, due to potential changes in preferences, competitive developments and other factors. In addition, any further delays in the expected start of production of the HyperSport line of motorcycles or other upcoming models could result in significant reservation cancellations. No assurance can be given that reservations will not be cancelled and will ultimately result in the final purchase, delivery and sale or lease of motorcycles. Accordingly, the number of reservations has significant limitations as a measure of demand for the Company's products, including demand for particular body styles, models or trim levels, or for future motorcycle sales.

***If the Company fails to manage future growth effectively, it may not be able to produce, market, service and sell (or lease) its motorcycles successfully.***

The Company plans to expand its operations in the near future in connection with the planned production of its motorcycles, which will require it to hire and train new personnel, accurately forecast production and revenue, control expenses and investments in anticipation of expanded operations, establish new or expand current design, production and sales and service facilities, implement and enhance administrative infrastructure, systems and processes, address new markets and establish international operations. If the Company fails to efficiently manage its growth, its business, financial condition, operating results and prospects may be materially adversely affected.

The Company expects to experience significant and rapid growth in the scope and complexity of its business, which may place a significant strain on the Company's senior management team and its financial and other resources. Such growth, if experienced, may expose the Company to greater costs and other risks associated with growth and expansion. The Company may be required to hire a broad range of additional employees, including other support personnel, among others, in order to successfully advance its operations. The Company may be unsuccessful in these efforts or may be unable to project accurately the rate or timing of these increases.

The Company's ability to manage its growth effectively will require the Company to continue to improve its operations, to improve financial and management information systems, and to train, motivate, and manage future employees. This growth may place a strain on the Company's management and operational resources. The failure to develop and implement effective systems, or to hire and retain sufficient personnel for the performance of all of the functions necessary to effectively service and manage the Company's business, or the failure to manage growth effectively, could have a materially adverse effect on the Company's business, financial condition, and results of operations. In addition, difficulties in effectively managing the budgeting, forecasting, and other process control issues presented by such a rapid expansion could harm the Company's business, financial condition, and results of operations.

***The Company has very limited experience servicing its motorcycles. If it is unable to address the service requirements of its future customers, the Company's business may be materially and adversely affected.***

The Company has limited experience in servicing its motorcycles, and it expects to be required to increase its servicing capabilities as it scales its operations and continues to grow, including by building the Company experience centers in the U.S. and Canada. Servicing electric vehicles is different than servicing vehicles with internal combustion engines and requires specialized skills, including high voltage training and servicing techniques. Although the Company believes the experience it has gained developing and operating prototypes of its motorcycles positions it well to service its motorcycles and future products, the Company has no after-sale experience of maintaining and servicing motorcycles for its customers at scale, and there is no guarantee Damon will be able to do so. There can be no assurance that the Company's service arrangements will adequately address the service requirements of the Company's customers to their satisfaction, or that the Company and its partners will have sufficient resources to timely meet ongoing service requirements at scale. In addition, the Company anticipates the level and quality of the services it plans to provide its customers will have a direct impact on the success of its brand, reputation and ongoing sales. Failure to address the servicing requirements of its customers could harm the Company's reputation or materially adversely affect its business, financial condition, operating results and prospects.

The Company's customers will also depend on the Company's customer support team to resolve technical and operational issues relating to the software integrated in its vehicles. The Company's ability to provide effective customer support is largely dependent on its ability to attract, train and retain qualified personnel with experience in supporting customers on platforms such as the Company's platform. As it continues to grow, additional pressure may be placed on the Company's customer support team, and the Company may be unable to respond quickly enough to accommodate short-term increases in customer demand for technical support. The Company may also be unable to modify the future scope and delivery of its technical support to compete with changes in the technical support provided by its competitors. Increased customer demand for support, without corresponding revenue, could increase costs and negatively affect the Company's results of operation. If the Company is unable to successfully address the servicing requirements of its customers or establish a market perception that it maintains high-quality support, it may be subject to claims from its customers, including for breach of warranties, loss of revenue or damages, and its business, financial condition, operating results and prospects may be materially adversely affected.

***The Company's motorcycles may not perform in line with customer expectations.***

The Company's vehicles, including the HyperSport line of motorcycles, may not perform in line with customers' expectations. For example, the Company's vehicles may not have the durability or longevity of other vehicles in the market and may not be as easy and convenient to repair as other vehicles in the market. Any product defects or any other failure of the Company's vehicles to perform as expected could harm its reputation and result in adverse publicity, harm to the Damon brand and reputation, lost revenue, delivery delays, product recalls, product liability claims, significant warranty and other expenses, and could have a material adverse impact on the Company's business, financial condition, operating results and prospects. Additionally, problems and defects experienced by other electric consumer vehicles could by association have a negative impact on perception and customer demand for the Company's vehicles.

Further, the Company's vehicles may contain defects in components, software, design and manufacture that may cause them not to perform as expected or that may require repairs, recalls or design changes, any of which would require significant financial and other resources to successfully navigate and resolve. The Company initially plans to deliver its vehicles without CoPilot ADAS, and thereafter to deliver its vehicles with CoPilot ADAS with limited functionality, with the goal to activate additional features over time. There is no guarantee that the CoPilot ADAS will ultimately perform in line with expectations. The Company's vehicles use a substantial amount of software code to operate and software products are inherently complex and often contain defects and errors when first introduced. Efforts to remedy any issues the Company observes in its products could significantly distract management's attention from other important business objectives, may not be timely, may hamper production or may not be to the satisfaction of its customers. Further, while extensive internal testing has been performed on the Company's vehicles' software and hardware systems, the Company's limited operating history and limited field data reduce its ability to evaluate and predict the long-term quality, reliability, durability and performance characteristics of its vehicles. There can be no assurance that the Company will be able to detect and resolve any defects in its vehicles prior to their sale to customers. If any of the Company's vehicles fail to perform as expected, deliveries may have to be delayed, product recalls initiated and servicing or updates under warranty provided at the Company's expense, which could adversely affect the Company's brand in its target markets and its business, financial condition, operating results and prospects may be materially adversely affected.

***Sales will depend in part on the Company's ability to establish and maintain confidence in its business prospects among customers, analysts and others within its industry.***

Consumers may be less likely to purchase the Company's products if they do not believe that its business will succeed or that its operations, including service and customer support operations, will continue for many years. Similarly, suppliers and other third parties will be less likely to invest time and resources in developing business relationships with the Company if they are not convinced that its business will succeed. Accordingly, to build, maintain and grow its business, the Company must establish and maintain confidence among customers, suppliers, analysts and other parties with respect to its liquidity and business prospects. Maintaining such confidence may be particularly difficult as a result of many factors, including the Company's limited operating history, others' unfamiliarity with its products, uncertainty regarding the future of electric vehicles, any prior or future delays in scaling production, delivery and service operations to meet demand, competition and the Company's production and sales performance compared with market expectations. Some of these factors are outside of the Company's control, and any negative perceptions about the Company's business prospects, even if exaggerated or unfounded, would likely harm its business and make it more difficult to raise additional capital in the future. In addition, a significant number of new electric vehicle companies have recently entered the automotive industry, which is an industry that has historically been associated with significant barriers to entry and a high rate of failure. If these new entrants or other manufacturers of electric vehicles go out of business, produce vehicles that do not perform as expected or otherwise fail to meet expectations, such failures may have the effect of increasing scrutiny of others in the industry, including the Company, and further challenging customer, supplier and analyst confidence in the Company's business prospects.

***The Company's business and prospects depend significantly on its ability to build its brand. The Company may not succeed in continuing to establish, maintain and strengthen the Damon brand, and its brand and reputation could be harmed by negative publicity regarding its company or products.***

The Company's business and prospects are heavily dependent on its ability to develop, maintain and strengthen the "Damon" brand. If the Company fails to establish, maintain and strengthen its brand, it may lose the opportunity to build a critical mass of customers. Promoting and positioning the "Damon" brand will likely depend significantly on the Company's ability to provide high quality vehicles and services and engage with its customers as intended and the Company has limited experience in these areas. In addition, the Company expects that its ability to develop, maintain and strengthen the "Damon" brand will also depend heavily on the success of its user development and branding efforts. Such efforts mainly include building a community of online and offline users engaged with the Company through its mobile application and the Company stores as well as other branding initiatives and events. Such efforts may be non-traditional and may not achieve the desired results. To promote the "Damon" brand, the Company may be required to change its user development and branding practices, which could result in substantially increased expenses, including the need to use traditional media such as television, radio and print. If the Company does not develop and maintain a strong brand, its business, financial condition, operating results and prospects may be materially and adversely impacted.

In addition, if incidents with the Company's business, vehicles or services occur or are perceived to have occurred, whether or not such incidents are the Company's fault, the Company could be subject to adverse publicity. In particular, given the popularity of social media, posts and opinions regarding Damon, whether true or not, could quickly proliferate and harm consumer perceptions and confidence in the "Damon" brand. Further, there is the risk of potential adverse publicity related to the Company's manufacturing or other partners, whether or not such publicity is related to their collaboration with the Company. The Company's ability to successfully position its brand could also be adversely affected by perceptions about the quality of its partners' vehicles. In addition, from time-to-time, the Company's vehicles are evaluated and reviewed by third parties. Any negative reviews or reviews which compare Damon unfavorably to competitors could adversely affect consumer perception about the Company's vehicles.

***The motorcycle and personal mobility market is highly competitive, and the Company may not be successful in competing in this industry.***

Many of the Company's current and potential competitors have significantly greater financial, technical, manufacturing, marketing and other resources than the Company and may be able to devote greater resources to the design, development, manufacturing, distribution, promotion, sale and support of their products. Based on publicly available information, a number of the Company's competitors already have displayed prototype electric motorcycles and have announced target availability and production timelines, while others have launched pilot programs or full commercial offerings in certain markets.

Notably, the Company expects competition in its industry to intensify in the future in light of increased demand and regulatory push for alternative fuel vehicles, continuing globalization and consolidation in the worldwide motorcycle industry. Factors affecting competition include, among others, product quality and features, innovation and development time, pricing, reliability, safety, fuel and energy economy, customer service (including breadth of service network) and financing terms.

The Company's ability to successfully compete in the motorcycle industry will be fundamental to its future success in existing and new markets and its market share. There can be no assurance that the Company will be able to compete successfully in the markets in which it operates. If the Company's competitors introduce new models or services that successfully compete with or surpass the quality, price, performance or availability of the Company's vehicles or services, the Company may be unable to satisfy existing customers or attract new customers at the prices and levels that would allow it to generate attractive rates of return on its investment. Increased competition could result in lower vehicle unit sales, price reductions and revenue shortfalls, loss of customers and loss of market share, which may materially adversely affect the Company's business, financial condition, operating results and prospects.

***There may be unanticipated obstacles to the execution of the Company's business model.***

The Company's business plans may change significantly. The Company's business model is capital intensive. The Company believes that its chosen activities and strategies are achievable in light of current economic and legal conditions with the skills, background, and knowledge of the Company's principals and advisors. The Company's management reserves the right to make significant modifications to its stated strategies depending on future events.

The Company's proposed plan of operation and prospects will depend largely upon its ability to successfully establish the Company's presence in a timely fashion, retain and continue to hire skilled management, technical, marketing, and other personnel, and attract and retain significant numbers of quality business partners and corporate clients. There can be no assurance that the Company will be able to successfully implement its business plan or develop or maintain future business relationships, or that unanticipated expenses, problems or technical difficulties which would result in material delays in implementation will not occur.

***Demand in the motorcycle and personal mobility industry is highly volatile.***

Volatility of demand in the motorcycle and personal mobility industry may materially and adversely affect the Company's business, financial condition, operating results and prospects. The markets in which the Company will be competing have been subject to considerable volatility in demand in recent periods. Demand for motorcycle and other potential personal mobility product sales depends to a large extent on general, economic, political and social conditions in a given market and the introduction of new motorcycles and technologies. As an early state company in the personal mobility industry, the Company has fewer financial resources than more established motorcycle and other personal mobility product manufacturers to withstand changes in the market and disruptions in demand.

***The Company's ability to generate meaningful product revenue will depend upon consumer's willingness to adopt electric motorcycles and other potential personal mobility products.***

The Company's growth will greatly depend upon the adoption by consumers of, and the Company is subject to an elevated risk of any reduced demand for, alternative fuel motorcycles in general and electric motorcycles and other potential personal mobility products in particular. If the market for electric motorcycles and other personal mobility products does not develop as expected or develops more slowly than expected, the Company's business, financial condition, operating results and prospects may be materially adversely affected. The market for alternative fuel motorcycles is relatively new, rapidly evolving, characterized by rapidly changing technologies, price competition, additional competitors, evolving government regulation and industry standards, frequent new motorcycle announcements and changing consumer demands and behaviors. Factors that may influence the adoption of alternative fuel motorcycles, and specifically electric motorcycles, include:

● perceptions about electric motorcycle and other personal mobility products quality, safety (in particular with respect to lithium-ion battery packs), design, performance and cost, especially if adverse events or accidents occur that are linked to the quality or safety of electric motorcycles;

● perceptions about motorcycle and other personal mobility products safety in general, in particular safety issues that may be attributed to the use of advanced technology, including motorcycle electronics and braking systems;

● the limited range over which electric motorcycles and personal mobility products may be driven on a single battery charge;

● the decline of an electric motorcycle and other personal mobility products range resulting from deterioration over time in the battery's ability to hold a charge or short-term declines resulting from adverse weather conditions;

● concerns about electric grid capacity and reliability, which could derail the Company's efforts to promote electric motorcycles and other potential personal mobility products as a practical solution to motorcycles which require gasoline;

● the availability of alternative fuel motorcycles, including plug-in hybrid electric motorcycles;

● improvements in the fuel economy of the internal combustion engine;

● the availability of service for electric motorcycles and other personal mobility products;

● the environmental consciousness of consumers;

● volatility in the cost of oil and gasoline;

● government regulations and economic incentives promoting fuel efficiency and alternate forms of energy;

● access to charging stations, standardization of electric motorcycle and other personal mobility products charging systems and consumers' perceptions about convenience and cost to charge an electric motorcycle or other personal mobility products;

● the availability of tax and other governmental incentives to purchase and operate electric motorcycles or future regulation requiring increased use of nonpolluting motorcycles;

● perceptions about and the actual cost of alternative fuel; and

● macroeconomic factors.

The influence of any of the factors described above may cause potential customers not to purchase the Company's electric motorcycles and other potential personal mobility products, which would materially adversely affect the Company's business, operating results, financial condition and prospects.

***The transportation industry has significant barriers to entry that the Company must overcome in order to manufacture and sell its electric motorcycles and other personal mobility products at scale.***

The transportation industry is characterized by significant barriers to entry, including large capital requirements, investment costs of developing, designing, manufacturing and distributing vehicles, long lead times to bring vehicles to market from the concept and design stage, the need for specialized design and development expertise, regulatory requirements, establishing a brand name and image and the need to establish sales and service locations. Since the Company is focused on electric motorcycles and other potential personal mobility products, it faces a variety of added challenges to entry that a traditional motorcycle manufacturer would not encounter, including additional costs of developing and producing an electric powertrain that has comparable performance to a traditional internal combustion engine in terms of range and power, inexperience with servicing electric vehicles, regulations associated with the transport of batteries, the need to establish or provide access to sufficient charging locations and unproven high-volume customer demand for fully electric motorcycles. If the Company is not able to overcome these barriers, its business, financial condition, operating results and prospects may be materially adversely affected, and its ability to grow its business may be harmed.

***The Company's planned distribution model is different from the predominant current distribution model for motorcycle manufacturers, which makes evaluating its business, financial condition, operating results and prospects difficult.***

The Company's planned distribution model is not common in the automotive industry today, particularly in North America. The Company plans to conduct vehicle sales directly to customers rather than through dealerships, primarily through the Company's website, subject to obtaining applicable dealer licenses and equivalent permits in such jurisdictions. Further, generally all of the Company's vehicles will be made to order. This model of vehicle distribution is relatively new and unproven, and subjects the Company to substantial risk as it requires, in the aggregate, significant expenditures and provides for slower expansion of distribution and sales systems than may be possible by utilizing the traditional dealer franchise system. For example, the Company may not be able to utilize long established sales channels developed through a franchise system to increase its sales volume. Moreover, the Company will be competing with companies with well established distribution channels. The Company's success will depend in large part on the Company's ability to effectively develop its own sales channels and marketing strategies.

Implementing such distribution model is subject to numerous significant challenges, including obtaining licenses or equivalent permits and approvals from government authorities, and there is no assurance that the Company will be able to obtain such licenses, permits and approvals. Further, there are substantial automotive franchise laws in place in many jurisdictions around the world and the Company may be exposed to significant franchise dealer litigation risks.

If the Company's direct sales and leasing model does not develop as expected or develops more slowly than expected, it may be required to modify or abandon its sales and leasing model, which could materially and adversely affect its business, financial condition, operating results and prospects.

***The Company's marketing programs may not be successful.***

The Company believes its brand is critical to its business. The Company will incur costs and expend other resources in its marketing efforts to raise brand awareness and attract and retain customers. These initiatives may not be successful, resulting in expenses incurred without the benefit of revenues or growth. Additionally, most, if not all, of the Company's competitors have greater financial resources, which enable them to spend significantly more than the Company is able to on marketing and advertising. Should the Company's competitors increase spending on marketing and advertising or the Company's marketing funds decrease for any reason, or should its advertising and promotions be less effective than its competitors, there could be a material adverse effect on Company's results of operations and financial condition.

***The Company is dependent on its suppliers, some of which are single or limited source suppliers, and the inability of these suppliers to deliver necessary components of the Company's vehicles at prices and volumes acceptable to the Company would have a material adverse effect on its business, financial condition, operating results and prospects.***

The Company is dependent on third-party suppliers and manufacturers to supply and manufacture parts and components, sub-assemblies and assemblies included in its vehicles, and it expects to continue to rely on third parties to supply and manufacture such parts and components, sub-assemblies and assemblies in the future. While the Company obtains parts and components, sub-assemblies and assemblies from multiple sources whenever possible, some of the parts and components, sub- assemblies and assemblies used in its vehicles are purchased from a single source.

The Company intends to mitigate supply chain risk by entering into long-term supply agreements with key manufacturers and suppliers where appropriate, including where there is a single source supplier, but has not secured such long-term supply agreements to date, and there can be no assurance that it will be able to do so on terms that are acceptable to the Company, or at all. Further, the supplier agreements the Company may enter into with key suppliers in the future may contain provisions where such agreements can be terminated in various circumstances, including potentially without cause. While the Company believes that it may be able to establish alternate supply relationships and can obtain or potentially engineer replacement components for some of its single source components, it may be unable to do so in the short-term or at all, or at prices, volumes or quality levels that are acceptable to it. Changes in business conditions, pandemics, governmental changes, political conflict and other factors beyond the Company's control, or that it does not presently anticipate, could affect its ability to receive components from its suppliers.

Any disruption in the supply of parts and components, sub-assemblies and assemblies, whether or not from a single source supplier, could temporarily disrupt manufacturing of the Company's vehicles until an alternative supplier is able to supply the required material. Changes in business conditions, unforeseen circumstances, governmental changes, and other factors beyond the Company's control or which it does not presently anticipate, could also affect Damon's suppliers' ability to deliver components to the Company on a timely basis and ultimately, the Company's ability to economically produce and distribute its vehicles.

In particular, the Company's vehicles contain electronics, microprocessors control modules, and other computer chips.

The Company is dependent on its suppliers to deliver many components that contain these microchips, and a shortage of microchips could disrupt the Company's operations and its ability to timely deliver vehicles to customers. Damon is closely monitoring the availability of these components, assessing the supply chain and production impacts and seeking potential alternatives.

Also, if any of the Company's suppliers become economically distressed or go bankrupt, the Company may be required to provide substantial financial support or take other measures to ensure supplies of components or materials, which could increase its costs, affect its liquidity or cause production disruptions.

The inability of any of the Company's suppliers to deliver necessary parts and components, sub-assemblies and assemblies according to the Company's schedule and at prices, volumes or quality levels acceptable to the Company, the Company's inability to efficiently manage these parts and components, sub-assemblies and assemblies, or the termination or interruption of any material supply arrangement could materially adversely affect the Company's business, financial condition, operating results or prospects. Further, as the scale of the Company's vehicle production increases, the Company will need to accurately forecast, purchase, warehouse and transport components to its manufacturing facilities and servicing locations internationally and at much higher volumes. If it is unable to accurately match the timing and quantities of component purchases to its actual needs or successfully implement automation, inventory management and other systems to accommodate the increased complexity in its supply chain, the Company may incur unexpected production disruption, storage, transportation and write-off costs.

Any of the foregoing may materially adversely affect the Company's business, financial condition, operating results or prospects.

***If the Company's suppliers fail to use ethical business practices and comply with applicable laws and regulations, the Company's brand image could be harmed due to negative publicity.***

The Company's core values, which include developing high quality electric motorcycles and other personal mobility products while operating with integrity, are an important component of the Damon brand image, which makes the Company's reputation sensitive to allegations of unethical business practices. The Company does not control its suppliers or their business practices. Accordingly, there is no assurance of compliance on the part of the Company's suppliers with ethical business practices, such as environmental responsibilities, fair wage practices, and compliance with child labor laws, among others. A lack of demonstrated compliance could lead the Company to seek alternative suppliers, which could increase its costs and results in delayed delivery of its products, product shortages or other disruptions of its operations.

Violation of labor or other laws by the Company's suppliers or the divergence of a supplier's labor or other practices from those generally accepted as ethical in the markets in which the Company operates could also attract negative publicity for Damon and its brand. If Damon, or other manufacturers in the industry in which the Company operates, encounters similar problems in the future, the Damon brand and the Company's business, financial condition, operating results and prospects may be materially adversely affected.

***The Company could experience cost increases or disruptions in supply of raw materials or other components used in its vehicles.***

The Company incurs significant costs related to procuring raw materials required to manufacture and assembling its vehicles. The Company uses various raw materials in its vehicles including aluminum, steel, carbon fiber, non-ferrous metals such as copper, lithium, nickel, and cobalt. The prices for these raw materials fluctuate depending on factors beyond the Company's control including market conditions and global demand for these materials and could adversely affect the Company's business, financial condition, operating results and prospects. The Company's business will also depend on the continued supply of battery cells for its vehicles. Battery cell manufacturers may refuse to supply electric vehicle manufacturers to the extent they determine that their vehicles are not sufficiently safe. The Company is exposed to multiple risks related to availability and pricing of quality lithium-ion battery cells. These risks include:

● the inability or unwillingness of current battery cell manufacturers to build or operate battery cell manufacturing plants to supply the numbers of lithium-ion cells required to support the growth of the electric or plug-in hybrid vehicle industry as demand for such cells increases;

● disruption in the supply of cells due to quality issues or recalls by the battery cell manufacturers; and

● an increase in the cost or decrease in the availability of raw materials used in battery cells, such as lithium, nickel, cobalt, used in lithium-ion cells.

Further, currency fluctuations, tariffs or shortages in petroleum and other economic or political conditions may result in significant increases in freight charges and raw material costs. Substantial increases in the prices for the Company's raw materials or components would increase its operating costs and could reduce its margins. In addition, a growth in popularity of electric vehicles without a significant expansion in battery cell production capacity could result in shortages which would result in increased materials costs to the Company, and its business, financial condition, operating results and prospects may be materially adversely affected.

***Increased freight and shipping costs or disruptions in transportation and shipping infrastructure could materially adversely affect the Company's business, financial condition, operating results and prospects.***

The Company intends to utilize air, sea and ground freight via third-party freight services for the transportation of supplies to its facilities and assembled vehicles to its customers. Adverse fluctuations in freight costs, limitations on shipping and receiving capacity, and other disruptions in the transportation and shipping infrastructure at important shipping and delivery points for the Company's products, as well as for parts and components, sub-assemblies and assemblies used in the Company's vehicles could materially adversely affect the Company's business, financial condition, operating results and prospects. For example, delivery delays or increases in transportation costs (including through increased energy costs, increased carrier rates or driver wages as a result of driver shortages, a decrease in transportation capacity, or work stoppages or slowdowns) could significantly decrease the Company's ability to make vehicle sales and earn revenues. Labor shortages or work stoppages in the transportation industry or long-term disruptions to the national and international transportation infrastructure that lead to delays or interruptions of deliveries or which would necessitate the Company securing alternative shipping suppliers could also increase the Company's costs or otherwise materially adversely affect its business, financial condition, operating results and prospects.

***The Company depends on certain key personnel, and its success will depend on its continued ability to retain and attract qualified management, technical and vehicle engineering and sales personnel.***

The Company's success will depend on the efforts, abilities, continued service and performance of the Company's senior management team and key management, technical, vehicle engineering and sales personnel, and in particular from Dom Kwong, Chief Executive Officer and Bal Bhullar, Chief Financial Officer. A number of these key employees have significant experience in the motorcycle and electric vehicle manufacturing industry. If any key personnel were to terminate their employment with, or cease providing services to, the Company, the risks described in this section may be heightened and the Company may have difficulty or may not be able to locate and hire a suitable replacement. The Company has not obtained any "key person" insurance on certain key personnel at this time.

***The Company's directors and executive officers may have other business interests and obligations to other entities.***

None of the Company's directors or officers will be required to manage the Company as their sole and exclusive function and they may have other business interests and may engage in other activities in addition to those relating to the Company, provided that such activities do not compete with the business of Damon or otherwise breach their agreements with the Company. The Company is dependent on its directors and officers to successfully operate Damon. Their other business interests and activities could divert time and attention from operating Damon's business.

Potential conflicts of interest may arise in the course of the Company's operations involving any member of management's interest, or an affiliate company's interest, as well as their respective interests in other potential unrelated activities. While the Company does have processes and procedures in place to identify, analyze or monitor conflicts of interest, there is no assurance that such processes and procedures will identify or disclose every conflict of interest that may arise.

***The Company's business may be adversely affected by labor and union activities.***

Although none of the Company's employees are currently represented by a labor union, it is common throughout the motorcycle industry generally for many employees at motorcycle companies to belong to a union, which can result in higher employee costs and increased risk of work stoppages. The Company also directly and indirectly depends upon other companies with unionized work forces, such as parts suppliers and trucking and freight companies. If a work stoppage occurs within the Company's business or that of the Company's key suppliers, it could delay the manufacture and sale of Damon's electric motorcycles and may have a material adverse effect on the Company's business, financial condition, operating results and prospects. Additionally, if the Company expands its business to include full in-house manufacturing of motorcycles or other potential personal mobility products, the Company's employees might join or form a labor union and the Company may be required to become a union signatory.

The Company has undergone recent reductions in force and may undergo additional reductions in force in the future. However, any headcount reduction may not result in anticipated cost savings and could have negative or unanticipated impacts on the Company's business.

To reduce operating expenses, the Company reduced its headcount, approximately 50% in early 2023 to late 2024, and the Company may seek to undergo additional workforce restructurings in the future. The Company may not realize the anticipated benefits, savings and improvements in its cost structure from such restructurings because of unforeseen difficulties, delays or unexpected costs. In particular, headcount reductions could lead to disruptions to operations, material delays in research and development, attrition beyond planned layoffs and increased challenges to hire and retain qualified personnel. If the Company is unable to realize the expected operational efficiencies and cost savings from past or future restructurings, the Company's operating results and financial condition would be adversely affected.

***The Company is or may be subject to risks associated with strategic alliances and acquisitions.***

The Company has entered into and may in the future enter into strategic alliances, including joint ventures or minority equity investments, with various third parties to further the Company's business purpose from time-to-time. These alliances could subject the Company to a number of risks, including risks associated with sharing proprietary information, non-performance by the third party and increased expenses in establishing new strategic alliances, any of which may materially and adversely affect its business. The Company may have limited ability to monitor or control the actions of these third parties and, to the extent any of these strategic third parties suffer negative publicity or harm to their reputation from events relating to their business, the Company may also suffer negative publicity or harm to its reputation by virtue of its association with any such third party.

In addition, although the Company does not have any current acquisition plans, if appropriate opportunities arise, the Company may acquire additional assets, products, technologies or businesses that are complementary to its existing business. In addition to a potential requirement for shareholder approval, the Company may also have to obtain approvals and licenses from relevant government authorities for the acquisitions and to comply with any applicable laws and regulations, which could result in increased delay and costs, and may derail its business strategy if the Company fails to do so. Further, past and future acquisitions and the subsequent integration of new assets and businesses into the Company (including the Business Combination) may require significant attention from the Company's management and could result in a diversion of resources from its existing business, which in turn could have an adverse effect on the Company's business operations. Acquired assets or businesses may not generate the expected financial results. Acquisitions could result in the use of substantial amounts of cash, potentially dilutive issuances of equity securities, the occurrence of significant goodwill impairment charges, amortization expenses for other intangible assets and exposure to potential unknown liabilities of the acquired business. Moreover, the costs of identifying and consummating acquisitions may be significant.

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***We may not be able to successfully integrate the business and operations of entities that we have acquired or may acquire in the future into our ongoing business operations, which may result in our inability to fully realize the intended benefits of these acquisitions, or may disrupt our current operations, which could have a material adverse effect on our business, financial position and results of operations.***

Integrating the technology and operations acquired in connection with the Business Combination and any potential future acquisitions involves complex operational, technological and personnel-related challenges, which are time-consuming and expensive and may disrupt our ongoing business operations. Furthermore, integration involves a number of risks, including, but not limited to:

● difficulties or complications in combining the companies' operations;

● differences in controls, procedures and policies, regulatory standards and business cultures among the combined companies;

● the diversion of management's attention from our ongoing core business operations;

● increased exposure to certain governmental regulations and compliance requirements;

● the potential increase in operating costs;

● the potential loss of key personnel;

● the potential loss of key customers or suppliers who choose not to do business with the combined business;

● difficulties or delays in consolidating the acquired companies' technology platforms, including implementing systems designed to maintain effective disclosure controls and procedures and internal control over financial reporting for the combined company and enable the Company to continue to comply with U.S. GAAP and applicable U.S. securities laws and regulations;

● unanticipated costs to successfully integrate operations, technologies, personnel of acquired businesses and other assumed contingent liabilities;

● difficulty comparing financial reports due to differing financial or internal reporting systems;

● making any necessary modifications to internal financial control standards to comply with the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated thereunder; or

● possible tax costs or inefficiencies associated with integrating the operations of the combined company.

These factors could cause us to not fully realize the anticipated financial or strategic benefits of future acquisitions which could have a material adverse effect on our business, financial condition and results of operations.

Even if we are able to successfully operate the acquired businesses, we may not be able to realize the revenue and other synergies and growth that we anticipate from these acquisitions in the time frame that we currently expect, and the costs of achieving these benefits may be higher than what we currently expect, because of certain risks:

● the possibility that the acquisition may not further our business strategy as we expected;

● the possibility that we may not be able to expand the reach and customer base for the acquired companies' current and future products as expected;

● the possibility that we may have entered a market with no prior experience and may not succeed in the manner expected; and

● the possibility that the carrying amounts of goodwill and other purchased intangible assets may not be recoverable.

As a result of these risks, the acquisitions and integration may not contribute to our earnings as expected, we may not achieve expected revenue synergies or return on invested capital when expected, or at all, and we may not achieve the other anticipated strategic and financial benefits of such acquisitions.

***Manufacturing in collaboration with partners is subject to risks.***

The Company has agreed to a partnership with Auteco, for the manufacture of a lower-cost global electric motorcycle (HyperLite) in the future. The Company intends to be paid by Auteco for each vehicle it assembles and sells on a per-vehicle basis monthly for the first five years of production. In addition, the Company has established a strategic partnership with Indika Energy for manufacturing, licensing and distribution in Indonesia, with the ability to expand that partnership to all of Southeast Asia. The Company may enter into similar with third party manufacturers in the future for its vehicles. Collaboration with third parties for the manufacturing of vehicles is subject to risks with respect to operations that are outside the Company's control. The Company could experience delays to the extent its partners do not meet agreed upon timelines or experience capacity constraints. There is a risk of potential disputes with manufacturing partners, and the Company could be affected by adverse publicity related to its partners whether or not such publicity is related to their collaboration with the Company. The Company's ability to successfully build a premium brand could also be adversely affected by perceptions about the quality of its manufacturing partners' vehicles. In addition, although the Company is involved in each step of the supply chain and manufacturing process, given the Company's reliance on its partners to meet the Company's quality standards, there can be no assurance that the Company will be able to successfully maintain such quality standards if outsourced manufacturing is adopted.

The Company may be unable to enter into new agreements or extend existing agreements with third-party manufacturing partners on terms and conditions acceptable to the Company and therefore may need to contract with other third parties or significantly add to its own production capacity. There can be no assurance that in such an event the Company would be able to partner with other third parties or establish or expand its own production capacity to meet its needs on acceptable terms or at all. The expense and time required to complete any transition, and to assure that vehicles manufactured at facilities of new third-party partners comply with the Company's quality standards and regulatory requirements, may be greater than anticipated. The occurrence of any of the foregoing may materially adversely affect the Company's business, financial condition, operating results and prospects.

***Manufacturing Capacity, if and when established by the Company, will present inherent risks.***

While the Company expects to be ready for initial production in 2026, there can be no assurance that the Company will be able to commence initial production on schedule and within budget, and more generally that the Company will be able to establish and expand production capacity to satisfy current reservations or future anticipated demand. This risk extends to supply chain and manufacturing quality risk, which could lead to lower volumes or lower quality than expected by customers. Further, if the Company is able to scale its manufacturing capacity to meet demand, the Company may need to incur greater facility costs, and there is no guarantee that the Company will be able to do so.

The delivery of HyperSport and subsequent motorcycles and other potential personal mobility products to the Company's future customers and the revenue derived therefrom depends on the Company's ability to source and fulfill the required vehicle manufacturing capacity, and it will depend on the ability of a future lessor to build and outfit future manufacturing facility. A future lessor's ability to fulfill its obligations is outside of the Company's control and depends on a variety of factors including the lessor's operations, financial condition and geopolitical and economic risks. If a future lessor is unable to fulfill its obligations or is only able to partially fulfill its obligations, the Company will not be able to manufacture and sell its HyperSport and other motorcycles in the volumes anticipated within the timeframe that the Company anticipates, if at all.

 ****

***The Company is and will be dependent on its manufacturing facilities. If one or more of its current or future manufacturing facilities become inoperable, capacity constrained or if operations are disrupted, its business, financial condition, operating results and prospects may be materially adversely affected.***

The Company's future revenue will be dependent on its manufacturing facilities. To the extent that the Company experiences any operational risk including, among other things, natural or man-made disasters, including earthquakes, flooding, fire and power outages, or by health epidemics or pandemics, and labor work force and work stoppages, resulting in any of its current or future manufacturing facilities becoming inoperable or capacity constrained, the Company will be required to make capital expenditures even though it may not have available resources at such time. Additionally, there is no guarantee that the proceeds available from the Company's insurance policies would be sufficient to cover such capital expenditures. As a result, the Company's insurance coverage and available resources may prove to be inadequate for events that may cause any of its current or future manufacturing facilities to become inoperable or capacity constrained, or any significant disruption to its operations. Any disruption in the Company's manufacturing processes could result in delivery delays, scheduling problems, increased costs, or production interruption, which, in turn, may result in its customers deciding to purchase products from its competitors. Damon is and will be dependent on its current and future manufacturing facilities which will in the future require a high degree of capital expenditures. If the Company's current or future assembly facilities becomes inoperative, capacity constrained or if operations are disrupted, its business, financial condition, operating results and prospects may be materially adversely affected.

***The Company relies on complex machinery for its operations, and production of its vehicles involves a significant degree of risk and uncertainty in terms of operational performance, safety, security and costs.***

The Company relies heavily on complex machinery for its operations and its production will involve a significant degree of uncertainty and risk in terms of operational performance, safety, security, and costs. The Company's contemplated and its partners' manufacturing facilities make use of large-scale machinery combining many components. The manufacturing plant components are likely to suffer unexpected malfunctions from time-to-time and will depend on repairs and spare parts to resume operations, which may not be available when needed. Unexpected malfunctions of the manufacturing facility components may significantly affect operational efficiency. Operational performance and costs can be difficult to predict and are often influenced by factors outside of the Company's control, including, but not limited to, scarcity of natural resources, environmental hazards and remediation, costs associated with decommissioning of machines, labor disputes and strikes, difficulty or delays in obtaining governmental permits, damages or defects in electronic systems, industrial accidents, pandemics, fire, seismic activity, and natural disasters. There is no guarantee that adverse events will not occur in the future, or that Damon will be able to contain such events without damage or delay. Should operational risks materialize, it may result in the personal injury to or death of workers, the loss of production equipment, damage to manufacturing facilities, vehicles, supplies, tools and materials, monetary losses, delays and unanticipated fluctuations in production, environmental damage, administrative fines, increased insurance costs, and potential legal liabilities, all which could have a material adverse effect on the Company's business, financial condition, operating results or prospects. Although the Company generally carries insurance to cover such operational risks, there is no assurance that such insurance coverage will be sufficient to cover potential costs and liabilities arising therefrom. A loss that is uninsured or exceeds policy limits may require the Company to pay substantial amounts, which could adversely affect the Company's business, financial condition, operating results and prospects.

***The Company's business may be negatively impacted by depreciation of equipment.***

The Company expects to continue to invest significantly in what it believes is state of the art tooling, machinery and other manufacturing equipment for the product lines where the HyperSport and subsequent HyperDrive powertrain platforms-based vehicles are manufactured/assembled, and Damon will depreciate the cost of such equipment over its expected useful life. Additionally, the Company expects manufacturing partners will be investing in their production lines in support of the Company's vehicle delivery goals. However, manufacturing technology may evolve rapidly, and the Company or its partners may decide to update its manufacturing process with cutting-edge equipment more quickly than expected. Moreover, as the Company ramps the commercial production of its vehicles, The Company's experience may cause it to discontinue the use of already installed equipment in favor of different or additional equipment. The useful life of any equipment that would be retired early as a result would be shortened, causing the depreciation on such equipment to be accelerated, and to the extent such equipment is owned by us, the Company's results of operations could be negatively impacted.

***Misconduct by employees of the Company or third-party service providers could cause significant losses to the Company.***

Misconduct by employees of the Company or third-party service providers could cause significant losses to the Company. Losses could also result from actions by third party service providers, including, without limitation, failing to recognize trades and misappropriating assets. In addition, employees and third-party service providers may improperly use or disclose confidential information, which could result in litigation or serious financial harm, including limiting the Company's business prospects or future marketing activities. No assurances can be given that the due diligence performed by the Company will identify or prevent any such misconduct.

***Dependence on a single licensor for our SAVES products and potential adverse changes to terms could negatively impact our financial condition and results of operations.***

All of our revenues from the SAVES distribution business have been derived from the sale of product licenses we purchase from the licensor. The Parent acquired an exclusive license to use, market, distribute and develop the SAVES products pursuant to an exclusive software license and distribution agreement, by and among the Parent, Cranes Software International Ltd. and Systat Software, Inc., as amended on June 30, 2020 and February 22, 2021, and has licensed the SAVES products to us. In connection with the spin out and as reported in the current report on Form 8-K filed by the Parent on February 23, 2024, the Parent sold 100% of the equity interest in Grafiti LLC, then a wholly-owned subsidiary of the Parent which holds the exclusive license to develop and sell the SAVES products, along with other assets and businesses, to an entity controlled by Nadir Ali, the former Chief Executive Officer and former sole director of the Company prior to the consummation of the Business Combination.

As the licensor, Grafiti LLC has and its successors will have significant negotiating power over us and rapid, significant or adverse changes in sales terms and conditions, such as competitive pricing as well as reducing the level of purchase discounts and rebates this or any new vendor makes available to us, may reduce the profit we can earn on these vendors' products and result in loss of revenue and profitability. Our gross profit could be negatively impacted if we are unable to pass through the impact of these changes to our distributors, resellers and customers. Additionally, significant changes in vendor payment terms or payment arrangements could negatively impact our liquidity and financial condition.

***Our competitors in the technology distribution industry can take more market share by reducing prices on our most profitable vendor products, causing us to reduce prices on such products.***

The technology distribution industry is characterized by intense competition, based primarily on product availability, credit terms and availability, price, effectiveness of information systems and e-commerce tools, speed of delivery, ability to tailor specific solutions to customer needs, quality and depth of product lines and training, service and support. Our customers are not required to purchase any specific volume of products from us and may move business if pricing is reduced by competitors, resulting in lower sales. As a result, we must be extremely flexible in determining when to reduce prices to maintain market share and sales volumes and when to allow our sales volumes to decline to maintain our desired level of profitability for our products. We compete with a variety of regional, national and international distributors and resellers, some of which may have greater financial resources than us. Many of our competitors compete principally on the basis of price and may have lower costs or accept lower selling prices than we do and, therefore, we may need to reduce our prices. In addition, vendors may choose to market their products directly to end-users, rather than through distributors such as us, and this could adversely affect our business, financial condition and results of operations.

***Our competitiveness in the technology distribution industry depends significantly on our ability to keep pace with the rapid changes in our industry. Failure by us to anticipate and meet our customers' technological needs could adversely affect our competitiveness and growth prospects.***

We operate and compete in the technology distribution industry which is characterized by rapid technological innovation, changing customer needs, evolving industry standards and frequent introductions of new products, product enhancements, services and distribution methods. Our success depends on our ability to develop expertise with these new products, product enhancements, services and distribution methods and to implement solutions that anticipate and respond to rapid changes in technology, the industry, and customer needs. The introduction of new products, product enhancements and distribution methods could decrease demand for current products or render them obsolete. Sales of products and services can be dependent on demand for specific product categories, and any change in demand for or supply of such products could have a material adverse effect on our net sales if we fail to adapt to such changes in a timely manner.

We offer one vendor's product offerings and are dependent on our customers demand for this vendor's products. There can be no assurances that consumer or commercial demand for our future products will meet, or even approach, our expectations. In addition, our pricing and marketing strategies may not be successful. Lack of customer demand, a change in marketing strategy and changes to our pricing models could dramatically alter our financial results. Unless we are able to release location-based products that meet a significant market demand, we will not be able to improve our financial condition or the results of our future operations.

***The growth of our SAVES distribution business is dependent on increasing sales to our existing customers and obtaining new customers, which, if unsuccessful, could limit our financial performance.***

Our ability to increase revenues from existing customers by identifying additional opportunities to sell more of our products and services and our ability to obtain new customers depends on a number of factors, including our ability to offer high quality products and services at competitive prices, meeting customers' needs and expectations, the strength of our competitors and the capabilities of our sales and marketing departments. If we are not able to continue to increase sales of our products and services to existing customers or to obtain new customers in the future, we may not be able to increase our revenues and could suffer a decrease in revenues as well.

***If our SAVES products fail to satisfy customer demands or to achieve increased market acceptance, our results of operations, financial condition and growth prospects could be materially adversely affected.***

The market acceptance of our products is critical to our continued success. Demand for our SAVES products is affected by a number of factors beyond our control, including continued market acceptance, the timing of development and release of new products by competitors, technological change, and growth or decline in the statistical analytics and visualization market. If we are unable to continue to meet customer demands or to achieve more widespread market acceptance of our products, our business operations, financial results and growth prospects will be materially and adversely affected.

***Defects, errors, or vulnerabilities in our SAVES products or services that we sell or the failure of such products or services to prevent a security breach, could harm our reputation and adversely affect our results of operations.***

Because the SAVES products we sell are complex, they have contained and may contain software design errors or software bugs that are not detected until after their commercial release and deployment by customers. Defects may cause such products to be vulnerable to security attacks, cause them to fail to help secure information or temporarily interrupt customers' networking traffic. Because the techniques used by hackers to access sensitive information change frequently and generally are not recognized until launched against a target, we may be unable to anticipate these techniques and provide a solution in time to protect customers' data. In addition, defects or errors in our subscription updates or products could result in a failure to effectively update customers' products and thereby leave customers vulnerable to advanced persistent threats (APTs) or security attacks.

Any defects, errors or vulnerabilities in the products we sell could result in:

● expenditure of significant financial and product development resources in efforts to analyze, correct, eliminate, or work-around errors or defects or to address and eliminate vulnerabilities;

● delayed or lost revenue;

● loss of existing or potential customers or partners;

● increased warranty claims compared with historical experience, or increased cost of servicing warranty claims, either of which would adversely affect gross margins; and

● litigation, regulatory inquiries, or investigations that may be costly and harm our reputation.

***Our SAVES business relies on a limited number of key customers, the importance of which may vary dramatically from year to year, and a loss of one or more of these key customers may adversely affect our operating results.***

During the year ended June 30, 2024 and prior to the Business Combination, Grafiti Limited had one customer that accounted for 11% of revenue of Grafiti Limited and during the year ended June 30, 2023, Grafiti Limited had one customer that accounted for 16% of revenue. During the six-month period ended December 31, 2024, Grafiti Limited had one customer that accounted for a of 16% of revenue of Grafiti Limited. During the nine-month period revenue of the Company. Each of these customers may or may not continue to be a significant contributor to revenue from our SAVES business in the remainder of fiscal 2025 and beyond. No customer accounted for more than 10% of our gross revenue from the SAVES business during the fiscal year ended June 30, 2022. The loss of a significant amount of business from one of our major customers could materially and adversely affect our results of operations until such time, if ever, as we are able to replace the lost business. Significant customers or projects in any one period may not continue to be significant customers or projects in other periods. To the extent that we are dependent on any single customer, we are subject to the risks faced by that customer to the extent that such risks impede the customer's ability to stay in business and make timely payments to us.

***A delay in the completion of our customers' budget processes could delay purchases of our SAVES products and services and have an adverse effect on our business, operating results and financial condition.***

We rely on our customers to purchase products and services from us to maintain and increase our earnings, however, customer purchases are frequently subject to budget constraints, multiple approvals, and unplanned administrative, processing and other delays. If sales expected from a specific customer are not realized when anticipated or at all, our results could fall short of public expectations and our business, operating results and financial condition could be materially adversely affected.

***If we cannot collect our receivables or if payment is delayed, our SAVES distribution business may be adversely affected by our inability to generate cash flow, provide working capital or continue our business operations.***

Our SAVES distribution business depends on our ability to successfully obtain payment from our customers of the amounts they owe us for products received from us and any work performed by us. The timely collection of our receivables allows us to generate cash flow, provide working capital and continue our business operations. Our customers may fail to pay or delay the payment of invoices for a number of reasons, including financial difficulties resulting from macroeconomic conditions or lack of an approved budget. An extended delay or default in payment relating to a significant account will have a material and adverse effect on the aging schedule and turnover days of our accounts receivable. If we are unable to timely collect our receivables from our customers for any reason, our business and financial condition could be adversely affected.

***If our SAVES products fail to satisfy customer demands or to achieve increased market acceptance, our results of operations, financial condition and growth prospects could be materially adversely affected.***

The market acceptance of our SAVES products are critical to our continued success. Demand for our products is affected by a number of factors beyond our control, including continued market acceptance, the timing of development and release of new products by competitors, technological change, and growth or decline in the statistical analytics and visualization market. If we are unable to continue to meet customer demands or to achieve more widespread market acceptance of our products, our business operations, financial results and growth prospects will be materially and adversely affected.

***Insurance and contractual protections related to our SAVES distribution business may not always cover lost revenue, increased expenses or liquidated damages payments, which could adversely affect our financial results.***

Although we maintain insurance and intend to obtain warranties from suppliers, obligate subcontractors to meet certain performance levels and attempt, where feasible, to pass risks we cannot control to our customers, the proceeds of such insurance or the warranties, performance guarantees or risk sharing arrangements may not be adequate to cover lost revenue, increased expenses or liquidated damages payments that may be required in the future.

**Risks Related to Economic Conditions**

***Global economic conditions, including inflation, could materially adversely impact demand for the Company's products and services.***

Damon's operations and performance depend significantly on economic conditions. Motorcycles are generally considered discretionary items for consumers. Many factors impact discretionary spending, including general economic conditions, inflation, unemployment, credit markets and consumer confidence in future economic conditions. Global economic conditions continue to be uncertain, particularly in light of high inflation and U.S. growing international trade tensions. Consumer purchases of discretionary items tend to be suppressed during recessionary periods when disposable income is lower, or during periods of economic instability or uncertainty when consumer confidence is low, which may make potential customers more likely to forgo or to postpone purchasing Damon's vehicles, or to purchase less expensive product offerings, which may be less profitable to Damon.

***Any financial or economic crisis, or perceived threat of such a crisis, including a significant decrease in consumer confidence, may materially and adversely affect the Company's business, financial condition, results of operations and prospects.***

The global financial markets experienced significant disruptions in 2008 and the Canadian, United States, European and other economies went into recession. The recovery from the lows of 2008 and 2009 was uneven and the global financial markets are facing new challenges, including and supply chain shortages or disruptions, and future potential economic slowdowns. It is unclear whether these challenges will be contained and what effects they each may have. There is considerable uncertainty over the long-term effects of the expansionary monetary and fiscal policies that have been adopted by the central banks and financial authorities of some of the world's leading economies. Economic conditions in China are sensitive to global economic conditions. Recently there have been signs that the rate of China's economic growth is declining. Any prolonged slowdown in China's economic development might lead to tighter credit markets, increased market volatility, sudden drops in business and consumer confidence and dramatic changes in business and consumer behaviors.

Sales of high-end and luxury consumer products, such as the Company's performance electric motorcycles or other personal mobility products, depend in part on discretionary consumer spending and are even more exposed to adverse changes in general economic conditions. In response to their perceived uncertainty in economic conditions, consumers might delay, reduce or cancel purchases of the Company's electric vehicles and the Company's business, financial condition, operating results and prospects may be materially adversely affected.

***The Company faces risks related to natural disasters, health epidemics and other outbreaks, which could significantly disrupt its operations.***

The Company's business could be adversely affected by the effects of local or global outbreaks, and epidemics or pandemics. The Company's business operations could be disrupted if any of its employees are suspected of having contracted any contagious and virulent viruses or other diseases, since it could require its employees to be quarantined or its offices to be disinfected. In addition, to the extent that any such outbreak, epidemic or pandemic would have detrimental effects on general economic conditions the Company's business, financial condition, operating results or prospects may be materially adversely affected.

The Company's headquarters and the Company operated locations, as well as certain of the Company's vendors and customers, are located in areas which have been and could be subject to natural disasters such as floods, hurricanes, tornadoes, fires or earthquakes. Adverse weather conditions or other extreme changes in the weather, including resulting electrical and technological failures, may disrupt the Company's business and may adversely affect the Company's ability to continue its operations. These events also could have indirect consequences such as increases in the costs of insurance if they result in significant loss of property or other insurable damage. Any of these factors, or any combination thereof, could adversely affect the Company's operations.

Although the Company has data hosted in offsite locations, the Company's backup system does not capture data on a real-time basis and the Company may be unable to recover certain data if a server fails. the Company cannot assure that any backup systems will be adequate to protect it from the effects of fire, floods, typhoons, earthquakes, power loss, telecommunications failures, break-ins, war, riots, terrorist attacks or similar events. Any of the foregoing events may give rise to interruptions, breakdowns, system failures, technology platform failures or internet failures, which could cause the loss or corruption of data or malfunctions of software or hardware as well as adversely affect the Company's ability to provide services on its platform.

***The Company's risk management efforts may not be effective which could result in unforeseen losses.***

The Company could incur substantial losses and its business operations could be disrupted if the Company is unable to effectively identify, manage, monitor, and mitigate financial risks, such as credit risk, interest rate risk, prepayment risk, liquidity risk, and other market-related risks, as well as operational risks related to its business, assets and liabilities. Damon's risk management policies, procedures, and techniques, including its scoring methodology, may not be sufficient to identify all of the risks the Company is exposed to, mitigate the risks the Company has identified or identify additional risks to which the Company may become subject in the future.

***The Company is subject to risks related to customer credit.***

The Company has partnered to offer leasing and financing of its vehicles to potential customers within the U.S. and is working to establish partnerships outside the U.S. through other third-party financing partners, the Company currently has no agreements in place with any potential financing partners. The Company cannot provide any assurance that such third-party financing partners would be able or willing to provide such services on terms acceptable to the Company or its customers, or to provide such services at all. Further, because the Company has not yet sold any vehicles and no secondary market for its vehicles exists, the future resale value of its vehicles is difficult to predict, and the possibility that resale values could be lower than expected increases the difficulty of providing leasing terms that appeal to potential customers through such third-party financing partners. The Company believes that the ability to offer attractive leasing and financing options is particularly relevant to customers in the luxury motorsport vehicle segments in which the Company will compete, and if the Company is unable to offer its customers an attractive option to finance the purchase of or lease HyperSport motorcycles or planned future models, such failure could substantially reduce the pool of potential customers and decrease demand for the Company's vehicles.

Further, offering leasing and financing alternatives to customers could expose the Company to risks commonly associated with the extension of consumer credit. Competitive pressure and challenging markets could increase credit risk through leases and loans to financially weak customers, extended payment terms, and leases and loans into new and immature markets, and any such credit risk could be further heightened in light of the economic uncertainty and any economic recession or other downturn, including by reason of a disease outbreak. If the Company is unable to provide leasing and financing arrangements that appeal to potential customers, or if the provision of such arrangements exposes it to excessive consumer credit risk, the Company's business, financial condition, operating results and prospects may be materially adversely affected.

***Motorcycle retail sales depend heavily on affordable interest rates and availability of credit for financing and a substantial increase in interest rates could materially and adversely affect the Company's business, financial condition, operating results and prospects.***

In certain regions, including North America and Europe, financing for new vehicle sales was available at relatively low interest rates in recent years due to, among other things, expansive government monetary policies. Interest rates began to rise sharply in early 2022, and market rates for new vehicle financing have increased as well. Higher interest rates make the Company's vehicles less affordable to customers and could steer customers to less expensive vehicles that would be less profitable for the Company compared to premium vehicles. Additionally, if consumer interest rates remain high or increase further, or if financial service providers further tighten lending standards or restrict their lending to certain classes of credit, customers may not desire or be able to obtain financing to purchase or lease the Company's vehicles.

***Fluctuations in exchange rates could have a material and adverse effect on the Company's results of operations.***

The Company reports its financial results in U.S. dollars and anticipates that a material portion of its sales and operating costs will be realized in currencies other than the U.S. dollar. If the value of any of said currencies depreciates relative to the U.S. dollar, the Company's foreign currency revenue will decrease when translated to U.S. dollar for reporting purposes. Alternatively, if the value of any of these currencies appreciates relative to the U.S. dollar, the Company's operating costs will increase when translated to U.S. dollar for reporting purposes. Although these risks may sometimes be naturally hedged by a match in the Company's sales and operating costs denominated in the same currency, fluctuations in foreign currency exchange rates could create discrepancies between the Company's sales and its operating costs in a given currency which may have a material adverse effect on the Company's business, financial condition, operating results and prospects.

Fluctuations in foreign currency exchange rates could also have a material adverse effect on the relative competitive position of the Company's products in markets where they face competition from manufacturers who are less affected by such fluctuations in exchange rates. The value of the U.S. dollar against the Canadian dollar and other currencies is affected by changes in various political and economic conditions. It is difficult to predict how market forces or government policy may impact the exchange rate between U.S. dollars and other currencies in the future. Changes in currency exchange rates can have impacts on the costs of imported goods for motorcycle or other personal mobility products assembly, and it can change the relative value or demand for motorcycles or such other personal mobility products abroad.

***The Company's sales and operating results may fluctuate from quarter-to-quarter and from year-to-year as they are affected, among other things, by the seasonal nature of the Company's products, fluctuation in the Company's operating costs and prevailing market conditions.***

The Company's future sales and operating results may experience substantial fluctuations from quarter-to-quarter and year-to-year. It is anticipated that sales for motorcycles in the principal markets in which the Company operates will be highest in spring and summer. In addition, the Company's revenues and operating costs will fluctuate from period-to-period with the pace at which it increases its production capacity and designs, develops and produces new vehicles. As a result of these fluctuations in revenues and expenses, along with other factors that are beyond the Company's control, including general economic conditions, changes in consumer preferences, weather conditions, vehicle sales mix, changes in the cost or availability of raw materials or labor, discretionary spending habits and currency exchange rate fluctuations, the Company may not be able to accurately predict its quarterly and annual sales and operating results, which are likely to fluctuate significantly from period- to-period. Sales and operating results in any period should not be considered indicative of the results to be expected for any future period.

**Risks Related to Technology**

***The Company's motorcycles rely on software and hardware that is highly technical, and if these systems contain errors, bugs or vulnerabilities, or if the Company is unsuccessful in addressing or mitigating technical limitations in its systems, its business, financial condition, operating results and prospects could be materially adversely affected.***

The Company's vehicles rely on software and hardware, including software and hardware developed or maintained by third parties, that is highly technical and complex and will require modification and updates over the life of the vehicles. In addition, the performance of the software solutions included in the Company's vehicles depends on the ability of such software and hardware to store, retrieve, process and manage immense amounts of data. The Company's software and hardware may contain errors, bugs or vulnerabilities, and its systems are subject to certain technical limitations that may compromise the Company's ability to meet its objectives. Some errors, bugs or vulnerabilities inherently may be difficult to detect and may only be discovered after the code has been released for external or internal use. Errors, bugs, vulnerabilities, design defects or technical limitations may be found within the Company's software and hardware. Although the Company attempts to remedy any issues it observes in its vehicles and software as effectively and rapidly as possible, such efforts may not be timely, may hamper production or may not be to the satisfaction of the Company's customers. Additionally, if the Company is able to deploy updates to the software addressing any issues, but such updates cannot or are not installed by its customers, such customers' software will be subject to these vulnerabilities until they install such updates. If the Company is unable to prevent or effectively remedy errors, bugs, vulnerabilities or defects in its software and hardware, the Company may suffer damage to its reputation, loss of customers, loss of revenue or liability for damages, any of which may materially adversely affect the Company's business, financial condition, operating results and prospects.

***There are complex software and technology systems that need to be developed by the Company and in coordination with vendors and suppliers to reach production for its vehicles, and there can be no assurance such systems will be successfully developed or integrated.***

The Company's vehicles and operations will use a substantial amount of complex third-party and in-house software and hardware. The development and integration of such advanced technologies are inherently complex, and the Company will need to coordinate with its vendors and suppliers to reach production for its vehicles. Defects and errors may be revealed over time and the Company's control over the performance of third-party services and systems may be limited. Thus, the Company's potential inability to develop and integrate the necessary software and technology systems may harm its competitive position.

The Company relies on third-party suppliers to develop a number of emerging technologies for use in its products, including battery technology and the use of different battery cell chemistries. Certain of these technologies and chemistries are not today, and may not ever be, commercially viable. There can be no assurances that the Company's suppliers will be able to meet the technological requirements, production timing, and volume requirements to support the Company's business plan. In addition, the technology may not comply with the cost, performance useful life and warranty characteristics that are anticipated. As a result, the Company's business plan could be significantly impacted, and the Company may incur significant liabilities under warranty claims which may materially adversely affect the Company's business, financial condition, operating results and prospects.

***The Company's industry and its technology are rapidly evolving and may be subject to unforeseen changes. Developments in alternative technologies or improvements in the internal combustion engine may materially and adversely affect the demand for its electric vehicles.***

The Company will operate in the electric vehicle industry, which is rapidly evolving and may not develop as anticipated. The regulatory framework governing the industry is currently uncertain and may remain uncertain for the foreseeable future. As the industry in which the Company operates and the Company's business develop, the Company may need to modify its business model or change its vehicles and services. These changes may be costly and may not achieve expected results, which could have a material adverse effect on the Company's business, financial condition, operating results and prospects.

Further, the Company may be unable to keep up with changes in electric vehicle technology or alternatives to electricity as a fuel source and, as a result, its competitiveness may suffer. The Company's research and development efforts may not be sufficient to adapt to changes in electric vehicle technology. As technologies change, the Company plans to upgrade or adapt its vehicles and introduce new models in order to continue to provide vehicles with the latest technology, in particular safety technology and battery technology, which could involve substantial costs and lower its return on investment for existing vehicles. There can be no assurance that the Company will be able to compete effectively with alternative vehicles or source and integrate the latest technology into its vehicles, against the backdrop of the Company's rapidly evolving industry. Even if the Company is able to keep pace with changes in technology and develop new models, the Company is subject to the risk that its prior models will become obsolete more quickly than expected, potentially reducing its return on investment.

Developments in alternative technologies, such as advanced diesel, ethanol, fuel cells or compressed natural gas, or improvements in the fuel economy of the internal combustion engine, may materially and adversely affect the Company's business, financial condition, operating results and prospects in ways not currently anticipated. For example, relatively inexpensive fuel, such as compressed natural gas, may emerge as consumers' preferred alternative to petroleum-based propulsion.

***The Company may face challenges providing charging solutions.***

Demand for the Company's vehicles will depend in part on the availability of charging infrastructure. While the prevalence of charging stations has been increasing, charging station locations are significantly less widespread than gas stations. Some potential customers may choose not to purchase an electric vehicle because of the lack of a more widespread service network or charging infrastructure at the time of sale. Although the Company intends to offer the ability to use alternative current and direct current charging infrastructure, allowing customers to use existing charging infrastructure and standards to charge their motorcycles, the Company has very limited experience in the actual provision of charging solutions to customers and providing these services is subject to challenges, which include dependence on existing charging networks and installation providers in appropriate areas. The Company's ability to generate customer loyalty and grow its business could be impaired by a lack of satisfactory access to charging infrastructure. To the extent the Company is unable to meet customer expectations or experiences difficulties in providing charging solutions, demand for its vehicles may suffer, and the Company's business, financial condition, operating results and prospects may be materially and adversely affected.

If the Company were to pursue development of a proprietary charging solution, the Company would face significant challenges and barriers, including successfully navigating the complex logistics of rolling out a network and teams in appropriate areas, resolving issues related to inadequate capacity or overcapacity in certain areas, addressing security risks and risks of damage to vehicles, securing agreements with third-party providers to roll out and support a network of charging solutions in appropriate areas, obtaining any required permits and land use rights and filings, and providing sufficient financial resources to successfully roll out the proprietary charging solution, which could require diverting such resources from the Company's other important business initiatives. In addition, the Company's limited experience in providing charging solutions could contribute to additional unanticipated challenges that would hinder its ability to provide such solutions or make the provision of such solutions costlier than anticipated.

***The range of the Company's electric motorcycles on a single charge decline over time, which may negatively influence potential customers' decisions whether to purchase its motorcycles.***

The battery life and range of the Company's motorcycles may vary or decline over time, like other vehicles that use current battery technology, including due to factors outside of the Company's control. Factors such as rider behaviour, usage, speed, terrain, time and stress patterns may also impact the battery's ability to hold a charge, which may decrease the Company's motorcycles' range before needing to recharge or could require the Company to limit vehicles' battery charging capacity, including via over-the-air or other software updates, for safety reasons or to protect battery capacity, which could further decrease the Company's vehicles' range between charges. Such decreases in or limitations of battery capacity and therefore range, whether imposed by deterioration, software limitations or otherwise, could also lead to customer complaints or warranty claims, including claims that prior knowledge of such decreases or limitations would have affected customers' purchasing decisions. In addition, the Company cannot guarantee that battery life and range deterioration will not be greater than what is currently anticipated, nor that the Company will be able to improve the performance of its battery packs, or increase its vehicles' range, in the future. Any deterioration above the expected level could affect the Company's reputation or could materially adversely affect its business, financial condition, operating results and prospects.

***The Company's vehicles make use of lithium-ion battery cells, which have been observed to catch fire or vent smoke and flame.***

The battery packs that the Company produces make use of lithium-ion cells. On rare occasions, lithium-ion cells can rapidly release the energy they contain by venting smoke and flames in a manner that can ignite nearby materials as well as other lithium-ion cells. While the battery pack has been designed to passively contain any single cell's release of energy without spreading to neighboring cells, a field or testing failure of the Company's vehicles or other battery packs that it produces could occur, which could result in bodily injury or death and could subject the Company to lawsuits, product recalls, or redesign efforts, all of which would be time consuming and expensive. Also, negative public perceptions regarding the suitability of lithium-ion cells for automotive applications or any future incident involving lithium-ion cells such as a vehicle or other fire, even if such incident does not involve the Company's vehicles, could materially adversely affect the Company's business, financial condition, operating results and prospects.

In addition, once the Company begins mass manufacturing of its vehicles, it will be required to store a significant number of lithium-ion cells at its facilities. While safety procedures related to the handling of the cells have been implemented, any mishandling of battery cells, or safety issue or fire related to cells, may cause damage, injury and disruption to the operation of its facilities. Such damage or injury could lead to adverse publicity and potentially a safety recall.

***The Company may be subject to risks associated with assisted driving technology.***

The Company's vehicles are being designed to offer some assisted driving functionality through the Company's CoPilot ADAS, including forward crash warning functionalities. Through research and development, the Company plans to continue to update and improve its assisted driving technology. Assisted driving technologies are subject to risks and there have been accidents and fatalities associated with such technologies. The safety of such technologies depends in part on driver interactions, and drivers may not be accustomed to using or adapting to such technologies. To the extent accidents associated with the Company's assisted driving systems occur, the Company could be subject to liability, negative publicity, government scrutiny, and further regulation. Moreover, any incidents related to assisted driving systems of the Company's competitors could adversely affect the perceived safety and adoption of the Company's vehicles and assisted driving technology more broadly. Any of the foregoing could materially and adversely affect the Company's business, financial condition, operating results and prospects.

**Risks Related to Intellectual Property**

***The Company's patent applications may not result in issued patents, which may have a material adverse effect on its ability to prevent others from interfering with the commercialization of the Company's products.***

The registration and enforcement of patents involves complex legal and factual questions, and the breadth and effectiveness of patented claims is uncertain. The Company cannot be certain that it is the first to file patent applications on the inventions it wishes to protect, nor can it be certain that its pending patent applications will result in issued patents or that any of its issued patents will afford sufficient protection against someone creating competing products, or as a defensive portfolio against a competitor who claims that the Company is infringing such competitor's patents. In addition, patent applications filed in foreign countries are subject to laws, rules and procedures that may differ from those of applicable in Canada or the U.S., and thus there is no certainty that foreign patent applications, if any, will result in issued patents in those foreign jurisdictions or that such patents can be effectively enforced, even if they relate to patents issued in Canada or the U.S.

***The Company may need to defend itself against patent or trademark infringement claims, which may be time-consuming and would cause the Company to incur substantial costs.***

Companies, organizations or individuals, including the Company's competitors, may hold or obtain patents, trademarks or other proprietary rights that would prevent, limit or interfere with the Company's ability to make, use, develop, sell or market its motorcycles or components, which could make it more difficult for Damon to operate its business. From time-to-time, the Company may receive communications from third parties that allege its products are covered by their patents or trademarks or other intellectual property rights. Companies holding patents or other intellectual property rights may bring suits alleging infringement of such rights or otherwise assert their rights.

In addition, various "non-practicing entities" that own patents and other intellectual property rights often attempt to aggressively assert their rights in order to extract value from technology companies. Furthermore, from time-to-time the Company may introduce or acquire new products and services, including in areas where Damon historically has not competed, which could increase the Company's exposure to patent and other intellectual property claims from competitors and non-practicing entities.

The Company may receive notice letters from patent holders alleging that certain of its products and services infringe their patent rights. Defending patent and other intellectual property litigation is costly and can impose a significant burden on management and employees, and there can be no assurances that favourable final outcomes will be obtained in all cases. In addition, plaintiffs may seek, and the Company may become subject to, preliminary or provisional rulings in the course of any such litigation, including potential preliminary injunctions requiring the Company to cease some or all of its operations. The Company may decide to settle such lawsuits and disputes on terms that are unfavorable to it. Similarly, if any litigation to which the Company is a party is resolved adversely, the Company may be subject to an unfavorable judgment that may not be reversed upon appeal. The terms of such a settlement or judgment may require the Company to cease some or all of its operations or pay substantial amounts to the other party. In addition, the Company may have to seek a license to continue practices found to be in violation of a third party's rights, which may not be available on reasonable terms, or at all, and may significantly increase the Company's operating costs and expenses. As a result, the Company may also be required to develop alternative non-infringing technology or practices or discontinue the practices. The development of alternative non-infringing technology or practices could require significant effort and expense or may not be feasible. The Company's business, financial condition, and results of operations could be adversely affected as a result of an unfavorable resolution of the disputes and litigation referred to above.

If the Company is determined to have infringed upon a third party's intellectual property rights, the Company may be required to do things that include one or more of the following:

● cease making, using, selling or offering to sell processes, goods or services that incorporate or use the third-party intellectual property;

● pay substantial damages;

● seek a license from the holder of the infringed intellectual property right, which license may not be available on reasonable terms or at all;

● redesign its motorcycles or other goods or services to avoid infringing the third-party intellectual property; or

● establish and maintain alternative branding for its products and services.

In the event of a successful claim of infringement against the Company and its failure or inability to obtain a license to the infringed technology or other intellectual property right, its business, financial condition, operating results and prospects may be materially adversely affected. In addition, any litigation or claims, whether or not valid, could result in substantial costs, negative publicity and diversion of resources and management attention.

**Risks Related to Regulation and Taxation**

***Our international business exposes us to geo-political and economic factors, legal and regulatory requirements, public health and other risks associated with doing business in foreign countries.***

We currently provide, and plan to continue providing, our products and services to customers internationally. These risks differ from and potentially may be greater than those associated with our domestic business.

Our international business is sensitive to changes in the priorities and budgets of international customers and geo-political uncertainties, which may be driven by changes in threat environments and potentially volatile worldwide economic conditions, various regional and local economic and political factors, risks and uncertainties, as well as Canadian, U.S., and UK foreign policy.

Our international sales are also subject to local government laws, regulations and procurement policies and practices, which may differ from the UK Government regulations, including regulations relating to import-export control, investments, foreign exchange controls and repatriation of earnings, as well as to varying currency, geo-political and economic risks. Our international contracts may include industrial cooperation agreements requiring specific in- country purchases, manufacturing agreements or financial support obligations, known as offset obligations, and provide for penalties if we fail to meet such requirements. Our international contracts may also be subject to termination at the customer's convenience or for default based on performance, and may be subject to funding risks. We also are exposed to risks associated with using foreign representatives and consultants for international sales and operations and teaming with international subcontractors, partners and suppliers in connection with international programs. As a result of these factors, we could experience award and funding delays on international programs and could incur losses on such programs, which could negatively affect our results of operations and financial condition.

We are also subject to a number of other risks including:

● the absence in some jurisdictions of effective laws to protect our intellectual property rights;

● multiple and possibly overlapping and conflicting tax laws;

● restrictions on movement of cash;

● the burdens of complying with a variety of national and local laws;

● political instability;

● currency fluctuations;

● longer payment cycles;

● restrictions on the import and export of certain technologies;

● price controls or restrictions on exchange of foreign currencies; and

● trade barriers.

In addition, our international operations (or those of our business partners) could be subject to natural disasters such as earthquakes, tsunamis, flooding, typhoons and volcanic eruptions that disrupt manufacturing or other operations. There may be conflict or uncertainty in the countries in which we operate, including public health issues (for example, an outbreak of a contagious disease such as 2019-Novel Coronavirus (2019-nCoV), avian influenza, measles or Ebola), safety issues, natural disasters, fire, disruptions of service from utilities, nuclear power plant accidents or general economic or political factors. For example, as a result of the Coronavirus outbreak, our ability to source internal connection cables for certain of our sensors has been delayed, which will require us to source these components from other vendors at a higher price that may result in an increase in our costs to produce our products In the event our customers are materially impacted by these events, it may impact anticipated orders and planned shipments for our products. With respect to political factors, the United Kingdom's 2016 referendum, commonly referred to as "Brexit," has created economic and political uncertainty in the European Union. Also, the European Union's General Data Protection Regulation imposes significant new requirements on how we collect, process and transfer personal data, as well as significant fines for non-compliance. Any of the above risks, should they occur, could result in an increase in the cost of components, production delays, general business interruptions, delays from difficulties in obtaining export licenses for certain technology, tariffs and other barriers and restrictions, longer payment cycles, increased taxes, restrictions on the repatriation of funds and the burdens of complying with a variety of foreign laws, any of which could ultimately have a material adverse effect on our business.

***The lack of availability, reduction or elimination of government and economic incentives or government policies which are favorable for electric vehicles and Canadian produced vehicles could have a material adverse effect on the Company's business, financial condition, operating results and prospects.***

Any reduction, elimination or discriminatory application of government subsidies and economic incentives because of policy changes, the reduced need for such subsidies and incentives due to the perceived success of electric motorcycles, fiscal tightening or other reasons may result in the diminished competitiveness of the alternative fuel motorcycle industry generally or the Company's electric motorcycles or other personal mobility products in particular. This could materially adversely affect the growth of the alternative fuel motorcycle markets and the Company's business, financial condition, operating results and prospects.

The Company's vehicles also benefit from government policies including tariffs on imported motorcycles to both Europe and the U.S. However, trade dynamics can change quickly between regions, and this advantage could become a disadvantage with new regulations or duties. Additionally, the amount of subsidies provided for purchasers of certain new energy motorcycles in various regions (both at national and local levels) could be reduced in the future, increasing the net cost experienced by customers. These policies are subject to change and are beyond the Company's control. There is no assurance that any changes would be favourable to the Company's business. Any of the foregoing could materially adversely affect the Company's business, financial condition, operating results and prospects.

***The Company's business could be adversely affected by trade tariffs or other trade barriers.***

The Company initially plans to potentially build Damon motorcycles in the US and/or Europe and will be shipping those motorcycles globally. It is not clear what impact changes to tariffs may have or what actions other governments may take in the future. In the future, tariffs could potentially impact the Company's raw material prices. In addition, changes in tariffs could have a material adverse effect on global economic conditions and the stability of global financial markets. Any of these factors could have a material adverse effect on the Company's business, financial condition, operating results and prospects.

***The construction and operation of one or more potential assembly facilities that the Company may seek to establish in the future, are or will be subject to regulatory approvals, and may be subject to delays, cost overruns or may not produce expected benefits.***

The Company's establishment of one or more potential manufacturing facilities could be subject to broad and strict government supervision and approval procedures, including, but not limited to, the project approvals and filings, construction land and project planning approval, environment protection approval, pollution discharge permits, work safety approvals, fire protection approvals, and the completion of inspection and acceptance by relevant authorities. As a result, the Company may be subject to administrative uncertainty regarding the construction within a specified time frame, fines or the suspension of work. The Company may face similar challenges with respect to any additional facilities it seeks to establish in the future to scale manufacturing capacity or otherwise. Any of the foregoing may have a material adverse impact on the Company's business, financial condition, operating results or prospects.

***The Company's vehicles are subject to motor vehicle standards and the failure to satisfy such mandated safety standards would have a material adverse effect on the Company's business, financial condition, operating results and prospects.***

All vehicles sold must comply with various standards of the market where the vehicles were sold. Rigorous testing and the use of approved materials and equipment are among the requirements for achieving such standards. Vehicles must pass various tests and undergo a certification process, before receiving delivery from the factory, being sold, or being used in any commercial activity, and such certification is also subject to periodic renewal. The Company expects to begin the process of obtaining certifications for the HyperSport in 2025/2026. If the Company's certification efforts fail, or a certified vehicle has a defect resulting in quality or safety accidents, or consistent failure of compliance with certification requirements is discovered, the approval can be withheld, suspended or even revoked. With effect from the date of revocation or during suspension of certification, any vehicle that fails to satisfy the requirements for certification may not continue to be delivered, sold, exported or used in any commercial activity. Failure by the Company to have the HyperSport or any future model electric vehicle satisfy motor vehicle standards would have a material adverse effect on the Company's business, financial condition, operating results and prospects.

 ****

***The Company is subject to anti-corruption, anti-bribery, anti-money laundering, financial and economic sanctions and similar laws, and noncompliance with such laws can subject the Company to administrative, civil and criminal fines and penalties, collateral consequences, remedial measures and legal expenses, all of which could materially adversely affect the Company's business, results of operations, financial condition and reputation.***

The Company is subject to anti-corruption, anti-bribery, anti-money laundering, financial and economic sanctions and similar laws and regulations in various jurisdictions in which the Company conducts activities, including the United States Foreign Corrupt Practices Act ("**FCPA**"), the Corruption of Foreign Public Officials Act (Canada) ("**CFPOA**"), the UK Bribery Act 2010 and other similar anti-corruption, anti-bribery, anti-money laundering, financial and economic sanctions, laws and regulations. The FCPA, the CFPOA and the UK Bribery Act 2010 prohibit the Company and its officers, directors, employees and business partners acting on the Company's behalf, including agents, from corruptly offering, promising, authorizing or providing anything of value to a "foreign official" for the purposes of influencing official decisions or obtaining or retaining business or otherwise obtaining favorable treatment. The FCPA also requires companies to make and keep books, records and accounts that accurately reflect transactions and dispositions of assets and to maintain a system of adequate internal accounting controls. The UK Bribery Act also prohibits non-governmental "commercial" bribery and soliciting or accepting bribes. A violation of these laws or regulations could harm the Damon brand and adversely affect the Company's business, financial condition, operating results and prospects.

The Company has direct or indirect interactions with officials and employees of government agencies and state-owned affiliated entities in the ordinary course of business. These interactions subject the Company to an increased level of compliance-related concerns. The Company is in the process of implementing policies and procedures designed to ensure compliance by it and its directors, officers, employees, representatives, consultants, agents and business partners with applicable anti-corruption, anti-bribery, anti-money laundering, financial and economic sanctions and similar laws and regulations. However, the Company's policies and procedures may not be sufficient, and its directors, officers, employees, representatives, consultants, agents, and business partners could engage in improper conduct for which the Company may be held responsible.

Non-compliance with anti-corruption, anti-bribery, anti-money laundering or financial and economic sanctions laws and regulations could subject the Company to whistleblower complaints, adverse media coverage, investigations, and severe administrative, civil and criminal sanctions, collateral consequences, remedial measures and legal expenses, all of which could harm the Damon brand and materially adversely affect the Company's business, financial condition, operating results and prospects. In addition, changes in economic sanctions laws in the future could adversely impact the Company's business and investments in the Company s securities.

***The Company is subject to numerous environmental, health and safety laws and any breach of such laws may have a material adverse effect on the Company's business, financial condition, operating results and prospects.***

The Company is subject to numerous environmental, health and safety laws, including statutes, regulations, bylaws and other legal requirements. These laws relate to the generation, use, handling, storage, transportation and disposal of regulated substances, including hazardous substances (such as batteries), dangerous goods and waste, emissions or discharges into soil, water and air, including noise and odors (which could result in remediation obligations), and occupational health and safety matters, including indoor air quality. These legal requirements vary by location and can arise under federal, provincial, state or municipal laws. Any breach of such laws, regulations, directives or requirements would have a material adverse effect on the Company's business, financial condition, operating results and prospects.

***The Company may be adversely affected by the complexity, uncertainties and changes in automotive or internet related Canadian regulations or similar regulations of any countries it is selling motorcycles into.***

The Company operates in the motorcycle and internet industry, both of which are extensively regulated by various governments. Regulations on vehicle homologation requirements may change over time, and potentially diverge in various regions, driving the need for increased vehicle variants, or discontinuation (temporary or permanent) of existing vehicle models.

In addition, the Company's mobile applications are also regulated by various regulations, for example there are regulations related to the collection and sharing of data. If the Company's mobile applications were found to be violating the regulations, the Company may be subject to administrative penalties, including warning, service suspension or removal of the Company's mobile applications from the relevant mobile application store, which may materially adversely affect the Company's business, financial condition, operating results and prospects.

**Risks Related to Cybersecurity and Privacy**

***The Company's inability to leverage vehicle and customer data could impact the servicing of its products, its software algorithms and impact research and development.***

The Company will rely on data collected from the use of its vehicles, including vehicle data and data related to battery usage statistics. The Company will use this data in connection with the servicing and normal course software updates of its products, its software algorithms and the research, development and analysis of its motorcycles. The Company's inability to obtain this data or the necessary rights to use this data or the Company's inability to properly analyze or use this data could result in the Company's inability to adequately service its vehicles or delay or otherwise negatively impact its research and development efforts. Any of the foregoing could materially adversely affect the Company's business, financial condition, operating results and prospects.

***Failure of information security and privacy concerns could subject the Company to penalties, damage its reputation and brand, and harm its business, financial condition, operating results and prospects.***

The Company faces significant challenges with respect to information security and privacy, including the storage, transmission and sharing of confidential information. The Company collects, transmits and stores confidential and private information of its customers, such as personal information, including names, accounts, user IDs and passwords, and payment or transaction related information. In certain jurisdictions, the Company is also subject to certain laws and regulations, such as "Right to Repair" laws, which require the Company to provide third-party access to its network or vehicle systems.

The Company is required by the laws of its various operating regions to ensure the confidentiality, integrity, availability and authenticity of the information of its customers and suppliers, which is also essential to maintaining their confidence in its vehicles and services. The Company intends to implement strict information security policies and deploy advanced measures to implement the policies, including, among others, advanced encryption technologies. However, advances in technology, an increased level of sophistication and diversity of the Company's vehicles and services, an increased level of expertise of hackers, new discoveries in the field of cryptography or others can still result in a compromise or breach of the measures that are used by the Company. If the Company is unable to protect its systems, and hence the information stored in its systems, from unauthorized access, use, disclosure, disruption, modification or destruction, such problems or security breaches could cause a loss, give rise to the Company's liabilities to the owners of confidential information or even subject the Company to fines and penalties. In addition, complying with various laws and regulations could cause Company to incur substantial costs or require Company to change its business practices, including its data practices, in a manner adverse to its business.

***Any unauthorized control or manipulation of the Company's vehicles' systems could result in loss of confidence in the Company and its vehicles and harm its business.***

The Company's vehicles contain complex information technology systems and built-in data connectivity to accept and install periodic remote updates to improve or update functionality. The Company has designed, implemented and tested security measures intended to prevent unauthorized access to its information technology networks and its vehicles and related systems. However, hackers may attempt to gain unauthorized access to modify, alter and use such networks, vehicles and systems to gain control of or to change Company's solutions' functionality, user interface and performance characteristics, or to gain access to data stored in or generated by the vehicles. Future vulnerabilities could be identified and Company's efforts to remediate such vulnerabilities may not be successful. Any unauthorized access to or control of Company's vehicles, or any loss of customer data, could result in legal claims or proceedings and remediation of such problems could result in significant, unplanned capital expenditures. In addition, regardless of their veracity, reports of unauthorized access to its technology systems or data, as well as other factors that may result in the perception that Company's vehicles, technology systems or data are capable of being "hacked," could materially adversely affect Company's brand and its business, financial conditions, operating results and prospects.

***The Company is subject to information technology and cybersecurity risks to operational systems, security systems, infrastructure, integrated software in its motorcycles and customer data processed by it, and any material failure, weakness, interruption, cyber event, incident or breach of security could prevent the Company from effectively operating its business, harm its reputation or materially adversely affect its business, financial condition, operating results and prospects.***

The Company is at risk for interruptions, outages and breaches of: (i) operational systems, including business, financial, accounting, product development, data processing or production processes, owned by it or its third-party vendors or suppliers; (ii) facility security systems, owned by it or its third-party vendors or suppliers; (iii) transmission control modules or other in-product technology, owned by it or its third-party vendors or suppliers; (iv) the integrated software in Company's vehicles; or (v) customer or driver data that Company processes or Company's third-party vendors or suppliers process on its behalf. Such cyber incidents could materially disrupt operational systems; result in loss of intellectual property, trade secrets or other proprietary or competitively sensitive information; compromise certain information of customers, employees, suppliers or others; jeopardize the security of the Company's facilities; or affect the performance of transmission control modules or other in-product technology and the integrated software in the Company's vehicles. A cyber incident could be caused by disasters, insiders (through inadvertence or with malicious intent) or malicious third parties (including nation-states or nation-state supported actors) using sophisticated, targeted methods to circumvent firewalls, encryption and other security defenses, including hacking, fraud, trickery, social engineering or other forms of deception. The techniques used by cyber attackers change frequently and may be difficult to detect for long periods of time.

Although the Company maintains information technology measures designed to protect it against intellectual property theft, data breaches and other cyber incidents, such measures will require updates and improvements, and there is no guarantee that such measures will be adequate to detect, prevent or mitigate cyber incidents. Any implementation, maintenance, segregation and improvement of the Company's systems may require significant management time, support and cost. Moreover, there are inherent risks associated with developing, improving, expanding and updating current systems, including the disruption of the Company's data management, procurement, production execution, finance, supply chain and sales and service processes. These risks may affect the Company's ability to manage its data and inventory, procure parts or supplies or produce, sell, deliver and service its vehicles, adequately protect its intellectual property or achieve and maintain compliance with, or realize available benefits under, applicable laws, regulations and contracts. The Company cannot be sure that these systems upon which it relies, including those of its third-party vendors or suppliers, will be effectively implemented, maintained or expanded as planned. If the Company does not successfully implement, maintain or expand these systems as planned, its operations may be disrupted, the Company's ability to accurately and timely report its financial results could be impaired, and deficiencies may arise in the Company's internal control over financial reporting, which may impact the Company's ability to certify its financial results. Moreover, the Company's proprietary information or intellectual property could be compromised or misappropriated, and its reputation may be adversely affected. If these systems do not operate as expected, Damon may be required to expend significant resources to make corrections or find alternative sources for performing these functions.

A significant cyber incident could impact the Company's manufacturing capacity or production capability, harm its reputation, cause the Company to breach its contractual arrangements with other parties or subject Damon to regulatory actions or litigation, any of which could materially adversely affect its business, financial condition, operating results or prospects. In addition, the Company's insurance coverage for cyberattacks may not be sufficient to cover all the losses it may experience as a result of a cyber incident.

The Company also collects, uses, discloses, stores, transmits and otherwise processes customer and employee and others' data as part of its business and operations, which may include personal data or confidential or proprietary information. The Company uses its vehicles' electronic systems to log information about each vehicle's use, such as charge time, battery usage, mileage and rider behavior, in order to aid it in vehicle diagnostics, repair and maintenance, as well as to help it customize and optimize the riding experience. The Company's users may object to the use of this data, which may harm the Company's business. The Company also works with partners and third-party service providers or vendors that may in the course of their business relationship with the Company collect, store and process such data on the Company's behalf and in connection with Damon's vehicles and services. There can be no assurance that any security measures that Damon or its third-party service providers, vendors, or suppliers have implemented will be effective against current or future security threats. While the Company has developed systems and processes designed to protect the availability, integrity, confidentiality and security of the Company's, the Company's customers', and employees' and others' data, such security measures or those of its third-party service providers, vendors or suppliers could fail and result in unauthorized access to or disclosure, acquisition, encryption, modification, misuse, loss, destruction or other compromise of such data. If a compromise of such data were to occur, the Company may become liable under its contracts with other parties and under applicable law for damages and incur penalties and other costs to respond to, investigate and remedy such an incident. Laws in all 50 states of the U.S., in Canada and in Europe require the Company to provide notice to individuals, customers, regulators, credit reporting agencies and others when certain sensitive information has been compromised as a result of a security breach or where a security breach creates a real risk of significant harm to an individual. Such laws are inconsistent and compliance if there is a widespread data breach could be costly. Depending on the facts and circumstances of such an incident, these damages, penalties, fines and costs could be significant. Any such event could harm the Company's reputation and result in litigation against it, or otherwise materially adversely affect its business, financial condition, operating results and prospects.

**Risks Related to Litigation, Product Warranty and Recalls**

***Adverse judgments or settlements in legal proceedings, including the claim brought by Jay Giraud or those that may arise relating to the Business Combination, could materially harm our business, financial condition, operating results, and cash flows.***

We may be a party to claims that arise from time to time in the ordinary course of our business, which may include those related to, for example, contracts, sub-contracts, protection of confidential information or trade secrets, adversary proceedings arising from customer bankruptcies, employment of our workforce and immigration requirements, or compliance with any of a wide array of state and federal statutes, rules, and regulations that pertain to different aspects of our business. In addition, we may deem it advisable to initiate expensive litigation to protect our business interests. We also face litigation risk related to the Business Combination. Business combinations often give rise to claims and legal proceedings, including shareholder lawsuits. Any shareholder claims or lawsuits alleging inadequate disclosure, breach of fiduciary duty, adequacy of consideration or other claims in connection with the Business Combination could lead to costly litigation and diversion of management's time and attention from our business.

For example, on March 7, 2025, we were served with a civil claim in the Supreme Court of British Columbia by a former director and CEO, alleging, among other things, that the Company and its Board of Directors failed to honor agreed-upon settlement terms related to his resignation. Please refer to the disclosure under "*Business – Legal Proceedings*" for details regarding this proceeding. While we deny the allegations, there is no guarantee that we will prevail in this matter, that additional claims will not arise, or that this or other litigation will not result in substantial costs, penalties, or other liabilities that could have a material adverse effect on our business, financial condition, or results of operations.

Furthermore, while we maintain insurance for certain potential liabilities, such insurance does not cover all types and amounts of potential liabilities and is subject to various exclusions as well as deductibles and caps on amounts of coverage. Even if we believe a claim is covered by insurance, insurers may dispute our entitlement to coverage for a variety of potential reasons, which may affect the timing and, if the insurers prevail, the amount of our available insurance coverage for a particular claim.

There is a risk that we will not be successful or otherwise be able to satisfactorily resolve any such claims or litigation. In addition, litigation and other legal claims are subject to inherent uncertainties. Those uncertainties include, but are not limited to, litigation costs and attorneys' fees, unpredictable judicial or jury decisions, and the differing laws and judicial proclivities regarding damage awards among the jurisdictions in which we operate. Unexpected outcomes in such legal proceedings, or changes in management's evaluation or predictions of the likely outcomes of such proceedings (possibly resulting in changes in established reserves), could have a material adverse effect on our business, financial condition, results of operations, and cash flows.

***The Company may become subject to product liability claims, which could harm the Company's financial condition and liquidity if it is not able to successfully defend or insure against such claims.***

The Company may become subject to product liability claims, which could harm the Company's business, financial condition, operating results and prospects. The motorcycle industry experiences significant product liability claims and the Company faces inherent risk of exposure to claims if its motorcycles do not perform as expected or malfunction resulting in personal injury or death. The Company's risks in this area are particularly pronounced given the limited field experience of its motorcycles. A successful product liability claim against the Company could require it to pay a substantial monetary award. Moreover, a product liability claim could generate substantial negative publicity about the Company's motorcycles, other personal mobility products and its business in general and inhibit or prevent commercialization of other future motorcycle candidates which could harm the Damon brand and have a material and adverse effect the Company's business, financial condition, operating results and prospects. The Company plans to seek adequate product liability insurance for all its motorcycles, but any such insurance might not be sufficient to cover all potential product liability claims and may not be available on terms satisfactory to the Company. Any lawsuit seeking significant monetary damages either in excess of such liability coverage, or outside of such liability coverage, may harm the Damon brand and have a material adverse effect on the Company's business, financial condition, operating results and prospects. The Company may not be able to secure additional product liability insurance coverage on commercially acceptable terms or at reasonable costs when needed, particularly if it faces liability for its products and is forced to make a claim under its product liability insurance policy(ies).

***The Company's warranty reserves may be insufficient to cover future warranty claims which could adversely affect its business, financial condition, operating results and prospects.***

As the Company's vehicles enter production, the Company will need to maintain warranty reserves to cover warranty-related claims. If the Company's warranty reserves are inadequate to cover future warranty claims on its vehicles, the Company's business, financial condition, operating results and prospects could be materially and adversely affected. The Company expects to record and adjust warranty reserves based on changes in estimated costs and actual warranty costs. However, the Company has limited operating experience with its vehicles, and therefore no experience with warranty claims for these vehicles or with estimating warranty reserves, which renders necessary reserves hard to predict. In the future, the Company may become subject to significant and unexpected warranty expenses. There can be no assurances that then-existing warranty reserves will be sufficient to cover all claims.

***The Company may be compelled to undertake product recalls or take other actions, which could adversely affect its brand image and financial performance.***

If the Company's vehicles are subject to recalls in the future, the Company may be subject to adverse publicity, damage to its brand and liability for costs. In the future, the Company may at various times, voluntarily or involuntarily, initiate a recall if any of its vehicles, including any systems or parts sourced from its suppliers, prove to be defective or noncompliant with applicable laws and regulations. Such recalls, whether voluntary or involuntary or caused by systems or components engineered or manufactured by the Company or its suppliers, could involve significant expense and could materially adversely affect the Damon brand image in the target markets of the Company, as well as the Company's business, financial condition, operating results and prospects.

***Damon Motors was previously involved in a dispute with the lessor of Damon Motors' former manufacturing facility in Surrey, British Columbia, which has since been settled.***

In April 2023, Damon Motors received a notice of default from a property management company related to Damon Motors' lease of a facility in Surrey, British Columbia. The notice of default asserts a breach of the lease and seeks approximately CAD$4.1 million in damages, in addition to accruing interest and other costs. Damon Motors executed a settlement agreement effective on June 30, 2023, whereby it subsequently settled the amount owing with an issuance of convertible notes and instalments of cash payments. Should Damon Motors default under the terms of the settlement agreement, Damon Motors could be forced to pay a substantial monetary sum to the property management company and may also suffer reputational or other harm.

Damon Motors was in compliance with the settlement and has agreed with the lessor to extend the terms of the agreement on any further payments as follows: (a) 1/3 of the remaining settlement amount on or before the date that is 30 days following completion of the Business Combination; (b) 1/3 of the remaining settlement amount on or before the date that is 60 days following completion of the Business Combination; and (c) 1/3 of the remaining settlement amount on or before the date that is 90 days following completion of the Business Combination. Damon Motors has not yet made any of the three scheduled payments under the agreement. The parties are negotiating ways to mitigate damages to the lessor and reduce Damon Motors' liability; however, there is no guarantee that a resolution will be reached soon or at all.

**Use of Proceeds**

Assuming a maximum raise of $30,600,000 which includes the Investor Processing Fee, we estimate that the net proceeds from the sale of the Common Shares in this Offering will be approximately $27,900,000, after deducting underwriting commissions and estimated Offering expenses. The following table sets forth a breakdown of our estimated use of our gross proceeds as we currently expect to use them, assuming the sale of, respectively, 25%, 50%, 75% and 100% of the Common Shares.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Assumed Percentage of Common Shares Sold** | **Assumed Percentage of Common Shares Sold** | **Assumed Percentage of Common Shares Sold** | **Assumed Percentage of Common Shares Sold** |
|  | **25%** | **50%** | **75%** | **100%** |
| Gross proceeds including Investor Processing Fee | $7650000 | $15300000 | $22950000 | $30600000 |
| Underwriting Commission | $344250 | $688500 | $1032750 | $1377000 |
| Other offering expenses | $864000 | $1017000 | $1170000 | $1323000 |
| Net proceeds | $6441750 | $13594500 | $20747250 | $27900000 |
| Repayment of Principal Amount of Streeterville June 2024 Note | $966262 | $2039175 | $3112088 | $4185000 |
| Research and Development | $2898788 | $6117525 | $9336262 | $12555000 |
| Marketing and Technology | $1288350 | $2718900 | $4149450 | $5580000 |
| Working Capital and Capital Expenditures | $1288350 | $2718900 | $4149450 | $5580000 |
| Total use of net proceeds | $6441750 | $13594500 | $20747250 | $27900000 |

---

We intend to use the net proceeds from this Offering for working capital and general corporate purposes, including research and development, as well as marketing and sales of our products. Additionally, unless otherwise waived, we expect to use 15% of the net proceeds from this Offering to pay towards the outstanding balance of the Streeterville Note, as required in accordance with the terms of such Note. As of July 21, 2025, the total outstanding balance under the Streeterville June 2024 Note consists of $4,491,700 in principal and $668,527 in accrued interest. Please refer to the section "*Management's Discussion and Analysis of Financial Conditions and Results of Operations – Recent Transactions – Second Amendment to June 2024 Secured Promissory Note*" herein for a more detailed discussion of the terms of the Streeterville Note.

The foregoing represents our current intentions to use and allocate the net proceeds of this Offering based upon our present plans and business conditions. Our management, however, will have broad discretion in the way that we use the net proceeds of this Offering. Pending the final application of the net proceeds of this Offering, we intend to invest the net proceeds of this Offering in short-term, interest-bearing, investment-grade securities. See "*Risk Factors"* herein for more information.

We believe that the expected net proceeds from this Offering and our existing cash and cash equivalents, will be sufficient to fund our operations for at least the next 12 months, although we cannot assure you that this will occur.

**DIVIDEND POLICY**

We have never declared or paid cash dividends on our Common Shares. We currently intend to retain all available funds and any future earnings for use in the operation of our business and do not anticipate paying any cash dividends in the near future. We may also enter into credit agreements or other borrowing arrangements in the future that will restrict our ability to declare or pay cash dividends. Any future determination to declare dividends will be made at the discretion of our board of directors and will depend on our financial condition, operating results, capital requirements, contractual restrictions, general business conditions and other factors that our board of directors may deem relevant. See "*Risk Factors — We do not intend to pay cash dividends to our shareholders*" herein for more information.

**Market INFORMATION**

Our Common Shares are traded on the OTCID Basic Market under the symbol "DMNIF", however, as a result of our recent reverse stock split effective on July 3, 2025, our current trading symbol is "DMNID" until August 1, 2025, when our symbol will revert to "DMNIF." As of the date of this filing, there were approximately 339 holders of record of our Common Shares. This includes Cede & Co., which holds shares on behalf of the beneficial owners of the Company's Common Shares. Because brokers and other institutions hold many of our shares on behalf of shareholders, we are unable to estimate the total number of shareholders represented by these record holders.

**CAPITALIZATION**

The following table sets forth our cash and cash equivalents and consolidated capitalization as of March 31, 2025:

● On an actual basis; and

● On a pro forma as adjusted basis to give effect to reflect the issuance and sale by us of $30,000,000 in Common Shares in this Offering at the assumed public offering price of $0.10 per Common Share, after deducting underwriting discounts and commissions and estimated offering expenses payable by us and the receipt by us of the proceeds of such sale.

The pro forma as adjusted information in the balance sheet data below is illustrative only. You should read this table together with the section entitled "*Management's Discussion and Analysis of Financial Condition and Results of Operations*" herein and our unaudited interim condensed consolidated financial statements and related notes as of March 31, 2025.

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| | | | |
|:---|:---|:---|:---|
|  | **As of March 31, 2025** | **As of March 31, 2025** | **As of March 31, 2025** |
|  | **Actual** | **As-Adjusted** | **As-Adjusted, Pro Forma** |
| Cash and Cash Equivalents | 7555820 | 7555820 | 35455820 |
| Total Current Liabilities | 28964753 | 28964753 | 28964753 |
| Stockholders' Equity |  |  |  |
| Common Shares, no par value; unlimited authorized; 4,030,131 issued and outstanding, actual; unlimited authorized, 304,030,131 issued and outstanding, pro forma; unlimited authorized, 304,030,131 issued and outstanding, pro forma as adjusted | 104117416 | 104117416 | 132017416 |
| Additional paid-in capital | 17555474 | 17555474 | 17555474 |
| Other Comprehensive Loss | (2248) | (2248) | (2248) |
| Accumulated Deficit | (142962099) | (142962099) | (142962099) |
| Non-controlling Interest |  |  |  |
| Total Stockholders' Equity | (21291457) | (21291457) | 6608543 |

---

The above discussion is based on 4,030,131 (pre-reverse stock split - 503,766,493) Common Shares issued and outstanding as of March 31, 2025, and excludes, as of that date, the following:

● 10,642 (pre-reverse stock split - 1,330,250) Common Shares issuable upon exercise of outstanding stock options, with a weighted average exercise price of $194 per Common Share, under our 2024 Stock Incentive Plan;

● 17,492 (pre-reverse stock split - 2,186,478) Common Shares issuable upon exercise of outstanding warrants, with a weighted average exercise price of $976 per Common Share;

● 14,587,827 (pre-reverse stock split - 1,823,478,340) Common Shares issuable upon exercise of outstanding Series A Warrants, as described in "*Management's Discussion and Analysis of Financial Conditions and Results of Operations – Recent Transactions – Completion of Registered Underwritten Offering"*;

● 985,876 (pre-reverse stock split - 123,234,561) Common Shares issuable upon exercise of outstanding Underwriter's Warrants, as described in "*Management's Discussion and Analysis of Financial Conditions and Results of Operations – Recent Transactions – Completion of Registered Underwritten Offering"*;

● an indeterminate number of Common Share issuable under the Streeterville Securities Purchase Agreement, subject to the market price at the closing of each pre-paid purchase and other terms and conditions of the agreement, as described in "*Management's Discussion and Analysis of Financial Conditions and Results of Operations – Recent Transactions – Amendments to December 2024 Securities Purchase Agreement"*; and

● up to approximately 51,602,270 Common Share issuable upon conversion of the Streeterville Note, as amended, including the outstanding principal as of March 31, 2025 and interest accrued through maturity, subject to further increase if the floor price is adjusted as permitted under its terms.

**Dilution**

Investors will incur immediate dilution in the net tangible book value of their Common Shares. Net tangible book value per share is calculated by subtracting our total liabilities from our total tangible assets and dividing the result by the number of outstanding Common Shares.

Our net tangible book value is determined by dividing our total tangible assets, less total liabilities, by the number of our Common Shares outstanding as of March 31, 2025. Our net tangible book value as of March 31, 2025, was negative $20,507,457 or negative $5.09 (pre-reverse stock split - $0.04) per Common Share. Dilution in net tangible book value per share represents the difference between the amount per share paid by purchasers of Common Shares in this Offering and the net tangible book value per share of our Common Shares immediately after this Offering. On a pro forma basis, giving effect to the issuance of an aggregate of 15,573,684 (pre-reverse stock split - 1,946,710,549) Common Shares after March 31, 2025 and as of the date of this filing, in connection with shares issued upon exercise of the Series A Warrants, our historical net tangible book value as of March 31, 2025 would have been negative $20,507,457, or negative $1.05 (pre-reverse stock split - $0.008) per Common Share.

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| | | |
|:---|:---|:---|
| Offering price per Common Share: |  | $0.10 |
| Historical net tangible book value as of March 31, 2025: | $(20507457) |  |
| As-adjusted net tangible book value as of March 31, 2025: | $7392543 |  |
| Increase in as-adjusted net tangible book value after this Offering: | $27900000 |  |
| As-adjusted, pro forma net tangible book value per Common Share after this Offering: | $0.02 |  |
| Dilution per Common Share to investors in this Offering: |  | $0.08 |

---

The following table illustrates the approximate per share dilution to new investors discussed above, assuming the sale of respectively, 100%, 75%, 50% and 25% of the Common Shares offered for sale in this Offering (after deducting our estimated offering expenses $711,000 and DealMaker commissions of $1,377,000 being proportionately reduced for 75%, 50% and 25% of the Common Shares offered for sale in this Offering):

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| | | | | |
|:---|:---|:---|:---|:---|
| **Funding Level** | **100% of Raise** | **75% of Raise** | **50% of Raise** | **25% of Raise** |
| Proceeds to Company | $27900000 | $20747250 | $13594500 | $6441750 |
| Offering Price per Common Share | $0.10 | $0.10 | $0.10 | $0.10 |
| Net tangible book value per Common Shares as of March 31, 2025 | $(5.09) | $(5.09) | $(5.09) | $(5.09) |
| Increase in net tangible book value per Common Share attributable to this Offering | $5.113 | $5.091 | $5.05 | $4.94 |
| As adjusted net tangible book value per Common Share after this Offering | $0.023 | $0.001 | $(0.04) | $(0.15) |
| Dilution per Common Share to new investors in this Offering | $0.077 | $0.099 | $0.14 | $0.25 |

---

The above discussion is based on 4,030,131 (pre-reverse stock split - 503,766,493) Common Shares issued and outstanding as of March 31, 2025, and excludes, as of that date, the following:

● 10,642 (pre-reverse stock split -1,330,250) Common Shares issuable upon exercise of outstanding stock options, with a weighted average exercise price of $194 per Common Share, under our Stock Incentive Plan;

● 17,492 (pre-reverse stock split -2,186,478) Common Shares issuable upon exercise of outstanding warrants, with a weighted average exercise price of $976 per Common Share;

● 14,587,827 (pre-reverse stock split - 1,823,478,340) Common Shares issuable upon exercise of outstanding Series A Warrants, as described in "*Management's Discussion and Analysis of Financial Conditions and Results of Operations – Recent Transactions – Completion of Registered Underwritten Offering"*;

● 985,876 (pre-reverse stock split - 123,234,561) Common Shares issuable upon exercise of outstanding Underwriter's Warrants, as described in "*Management's Discussion and Analysis of Financial Conditions and Results of Operations – Recent Transactions – Completion of Registered Underwritten Offering"*;

● an indeterminate number of Common Share issuable under the Streeterville Securities Purchase Agreement, subject to the market price at the closing of each pre-paid purchase and other terms and conditions of the agreement, as described in "*Management's Discussion and Analysis of Financial Conditions and Results of Operations – Recent Transactions – Amendments to December 2024 Securities Purchase Agreement"*; and

● up to approximately 51,602,270 Common Share issuable upon conversion of the Streeterville Note, as amended, including the outstanding principal as of March 31, 2025 and interest accrued through maturity, subject to further increase if the floor price is adjusted as permitted under its terms.

To the extent that convertible and exercisable securities discussed above have been or may be converted or exercised or we issue other Common Shares or securities convertible or exercisable into Common Shares, investors purchasing Common Shares in this Offering may experience further dilution. In addition, we may seek to raise additional capital in the future through the sale of equity or convertible debt securities. To the extent we raise additional capital through the sale of equity or convertible debt securities, the issuance of such securities could result in further dilution to our shareholders.

**UNAUDITED SELECTED FINANCIAL DATA**

On July 3, 2025, the Company effected a 1-for-125 reverse stock split ("**Reverse Stock Split**") of its outstanding Common Shares.

The audited consolidated financial statements of Damon Motors Inc for the years ended June 30, 2024 and 2023, the audited consolidated financial statements of Grafiti Holding Inc. for the years ended June 30, 2024, and 2023, and the unaudited condensed consolidated financial statements of Damon Inc. (formerly Grafiti Holding Inc.) for the three month period ended September 30, 2024, each of which is included in the registration statement on Form S-1 filed with the SEC on March 18, 2025 (File No. 333-285872) (the "S-1 Registration Statement"), and the Company's unaudited condensed consolidated financial statements for the three and nine month periods ended March 31, 2025, included in its Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 that was filed with the SEC on May 19, 2025 (the "10-Q Report"), are presented without giving effect to the Reverse Stock Split.

The following selected financial data has been derived from the audited consolidated financial statements of Damon Motors Inc. for the years ended June 30, 2024 and 2023, the audited consolidated financial statements of Grafiti Holding Inc. for the years ended June Reverse Stock Split 30, 2024 and 2023, the unaudited condensed consolidated financial statements of Damon Inc. (formerly Grafiti Holding Inc.) for the three month period ended September 30, 2024, each included in S-1 Registration Statement, and adjusted to reflect the Reverse Stock Split. The following selected financial data has also been derived from the Company's unaudited condensed consolidated financial statements for the three and nine month periods ended March 31, 2025, included in the 10-Q Report, and adjusted to reflect the Reverse Stock Split. The Company's historical results may not be indicative of the results that may be expected in the future.

**AS REPORTED**

**Damon Motors Inc.:**

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| | | |
|:---|:---|:---|
|  | **Years Ended** | **Years Ended** |
|  | **June 30,<br> 2024** | **June 30, <br> 2023** |
| Net loss attributable to common stockholders | $(33968248) | $(37012609) |
| Net loss per share, basic and diluted | $(2.79) | $(3.14) |
| Weighted average common shares outstanding, basic and diluted | 12180571 | 11793772 |
| Common shares outstanding at year end | 12324504 | 11829386 |

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**Grafiti Holding Inc.:**

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| | | |
|:---|:---|:---|
|  | **Years Ended** | **Years Ended** |
|  | **June 30,<br> 2024** | **June 30, <br> 2023** |
| Net loss attributable to common stockholders | $(1348357) | $(73828) |
| Net loss per share, basic and diluted | $(0.37) | $(0.02) |
| Weighted average common shares outstanding, basic and diluted | 3600001 | 3600001 |
| Common shares outstanding at year end | 3600001 | 3600001 |

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**Damon Inc. (formerly Grafiti Holding Inc.):**

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| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **September 30,<br> 2024** | **September 30, <br> 2023** |
| Net loss attributable to common stockholders | $(1564540) | $(3692) |
| Net loss per share, basic and diluted | $(0.39) | $(0.001) |
| Weighted average common shares outstanding, basic and diluted | 4006706 | 3600001 |
| Common shares outstanding at period end | 4615384 | 3600001 |

---

**Damon Inc.:**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **March 31, <br> 2025** | **March 31,<br> 2024** | **March 31,<br> 2025** | **March 31, <br> 2024** |
| Net loss attributable to common stockholders | $(25163438) | $(13096933) | $(2354505) | $(25604984) |
| Net loss per share, basic and diluted | $(0.50) | $(1.06) | $(0.11) | $(2.11) |
| Weighted average common shares outstanding, basic and diluted | 50566406 | 12303733 | 21855268 | 12135890 |
| Common shares outstanding at period end | 503766493 | 2592740 | 503766493 | 2592740 |

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**AS ADJUSTED FOR 1-FOR-125 REVERSE STOCK SPLIT (unaudited):**

**Damon Motors Inc.:**

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| | | |
|:---|:---|:---|
|  | **Years Ended** | **Years Ended** |
|  | **June 30,<br> 2024** | **June 30, <br> 2023** |
| Net loss attributable to common stockholders | $(33968248) | $(37012609) |
| Net loss per share, basic and diluted | $(348.59) | $(392.29) |
| Weighted average common shares outstanding, basic and diluted | 97444 | 94350 |
| Common shares outstanding at year end | 98596 | 94635 |

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**Grafiti Holding Inc.:**

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| | | |
|:---|:---|:---|
|  | **Years Ended** | **Years Ended** |
|  | **June 30,<br> 2024** | **June 30, <br> 2023** |
| Net loss attributable to common stockholders | $(1348357) | $(73828) |
| Net loss per share, basic and diluted | $(46.82) | $(2.56) |
| Weighted average common shares outstanding, basic and diluted | 28800 | 28800 |
| Common shares outstanding at year end | 28800 | 28800 |

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**Damon Inc. (formerly Grafiti Holding Inc.):**

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| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **September 30,<br> 2024** | **September 30, <br> 2023** |
| Net loss attributable to common stockholders | $(1564540) | $(3692) |
| Net loss per share, basic and diluted | $(48.81) | $(0.13) |
| Weighted average common shares outstanding, basic and diluted | 32053 | 28800 |
| Common shares outstanding at period end | 36923 | 28800 |

---

**Damon Inc.:**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **March 31, <br> 2025** | **March 31,<br> 2024** | **March 31,<br> 2025** | **March 31, <br> 2024** |
| Net loss attributable to common stockholders | $(25163438) | $(13096933) | $(2354505) | $(25604984) |
| Net loss per share, basic and diluted | $(62.20) | $(133.06) | $(13.47) | $(263.73) |
| Weighted average common shares outstanding, basic and diluted | 404531 | 98429 | 174842 | 97087 |
| Common shares outstanding at period end | 4030131 | 20741 | 4030131 | 20741 |

---

**UNAUDITED PRO FORMA CONDENSED COMBINED<br> AND CONSOLIDATED COMBINED FINANCIAL INFORMATION**

The following unaudited pro forma condensed combined and consolidated financial information presents the combination of the financial information of Damon Inc. (f/k/a Grafiti Holding Inc.) and Subsidiaries (the "**Company**", "**Damon**", "**Legacy Grafiti**" or "**Pubco**") and Damon Motors Inc. ("**Legacy Damon**") adjusted to give effect to the Business Combination and related transactions. The following unaudited pro forma condensed combined and consolidated financial information has been prepared in accordance with Article 11 of Regulation S-X. Defined terms included below have the same meaning as terms defined and included elsewhere in this Offering Statement.

The historical financial information of Damon was derived from the unaudited financial statements of Damon Inc. for the nine months ended March 31, 2025, and the audited consolidated financial statements of Damon Inc. as of and for the year ended June 30, 2024, included elsewhere in this Offering Cicrular. This historical financial information reflects Legacy Damon's activity for the period from July 1, 2024 to November 12, 2024, and the combined Company's activity from November 13, 2024 to March 31, 2025. The pro forma financial information is adjusted for acquisition of Legacy Grafiti which reflects Legacy Grafiti's activity for the period July 1, 2024 to November 12, 2024. As the Business Combination is reflected in the balance sheet of the Damon as of March 31, 2025, and therefore, a pro forma balance sheet was not included in the unaudited pro forma condensed combined financial information in accordance with Article 11 of Regulation S-X.

The historical financial information of Legacy Grafiti in the condensed combined and consolidated statement of operations for the year ended June 30, 2024 consists of carve-out financial statements of Grafiti limited ("**Grafiti UK**"), as Legacy Grafiti was the parent non-operating holding company of Grafiti UK, and the operations of Legacy Grafiti following the carve-out from XTI (defined below). The unaudited pro forma financial information has been prepared utilizing the unaudited carve-out financial statements of Grafiti UK, adjusted to reflect the equity structure of Legacy Grafiti and the reorganization as a result of the spin-off of Legacy Grafiti from XTI Aerospace, Inc., ("XTI", formerly known as Inpixon) for all operating results prior to December 27, 2023, as incorporated in the financial statements of Legacy Grafiti as of and for the year ended June 30, 2024. The historical financial information of Legacy Grafiti was derived from the books and records of Legacy Grafiti for the period between July 1, 2024 to November 12, 2024, and the audited consolidated financial statements of Legacy Grafiti as of and for the year ended June 30, 2024, included elsewhere in this Offering Circular. The unaudited pro forma financial information has been prepared on a basis consistent with the financial statements of Legacy Damon and Legacy Grafiti, respectively. This information should be read together with the financial statements of Legacy Damon and Legacy Grafiti and related notes and the section titled *"Management's Discussion and Analysis of Financial Condition and Results of Operations*" included in this Offering Circular, as applicable. The unaudited pro forma condensed combined and consolidated financial information is prepared using the reporting currency of the United States Dollar.

The unaudited pro forma condensed combined and consolidated statement of operations for the nine months ended March 31, 2025, and for the year ended June 30, 2024 gives pro forma effect to the Business Combination and related transactions as if they had occurred on July 1, 2023, the beginning of the earliest period presented.

These unaudited pro forma condensed combined and consolidated financial statements are for informational purposes only. They do not purport to indicate the results that would have been obtained had the Business Combination and related transactions actually been completed on the assumed date or for the period presented. The pro forma adjustments are based on the information currently available and the assumptions and estimates underlying the pro forma adjustments are described in the accompanying notes. Actual results may differ materially from the assumptions within the accompanying unaudited pro forma condensed combined and consolidated financial information.

**Description of the Business Combination Agreement**

On October 23, 2023, a Business Combination Agreement was entered into by and among XTI Aerospace, Inc. (then parent company of Grafiti), Grafiti, 1444842 B.C. Ltd., a British Columbia corporation and a newly formed wholly-owned subsidiary of Grafiti ("Amalco Sub"), and Legacy Damon, pursuant to which Legacy Damon combined and merged with Amalco Sub with Legacy Damon continuing as the surviving entity.

On November 13, 2024, Legacy Damon and Amalco Sub amalgamated to continue as a wholly-owned subsidiary of Grafiti (the "Amalgamation"). Following the Amalgamation, Legacy Damon became a wholly-owned subsidiary of Legacy Grafiti and Legacy Grafiti was immediately renamed to "Damon Inc.".

Following the consummation of the Business Combination, the holders of the historical outstanding capital stock of Legacy Damon owned approximately 77.8% of the outstanding capital stock of Pubco and approximately 81.5% on a fully diluted basis. Following the consummation of the Business Combination, the holders of the historical outstanding capital stock of Legacy Grafiti owned approximately 22.2% of the outstanding capital stock of Pubco and approximately 18.5% on a fully dilutive basis.

*Grafiti Promissory Note - Streeterville Capital, LLC*

On June 26, 2024, Grafiti and Streeterville Capital, LLC ("Streeterville") entered into a promissory note agreement (the "Grafiti Promissory Note") for an amount up to $6,470,000 bearing an interest rate of 10% per annum and due 18 months after the issue date. In connection with the close of the Business Combination, Streeterville will pay an aggregate amount of $5,000,000 in consideration for the Promissory Note of which $3,500,000 was initially sent to an escrow account. Of the remaining $1,470,000 under the Promissory Note, $1,450,000 relates to original issue discount ("OID") and $20,000 relates to issuance costs to cover legal, accounting, due diligence, monitoring and other transaction costs. Streeterville will be unconditionally obligated to release to Pubco the amount held in escrow upon completion of the certain Business Combination Agreement, and listing of the combined company on a national securities exchange. On September 23, 2024, an additional $350,000 was released to Grafiti from the escrow account. The remaining $3,150,000 in escrow was released to the combined Company following the consummation of the Business Combination. The unaudited pro forma condensed combined and consolidated financial statements include a pro forma adjustment for the $3,150,000 in escrow as if it had occurred on July 1, 2023 (see adjustments D in Note 4).

**UNAUDITED PRO FORMA CONDENSED COMBINED AND CONSOLIDATED STATEMENT OF OPERATIONS FOR THE NINE MONTHS ENDED MARCH 31, 2025**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Damon Inc.<br> (Historical) <br> (Restated)** | **Grafiti<br> (Pro forma<br> financial<br> information<br> (adjusted<br> for the <br> period from<br> July 1, 2024<br> through<br> November 12,<br> 2024))** | **Transaction** <br> **accounting <br> adjustments** | **Pro Forma** <br> **Combined** |
| Revenue | $130934 | $144138 | $- | $275072 |
| Cost of revenue | 61493 | 57806 | - | 119299 |
| Gross profit | 69441 | 86332 |  | 155773 |
| **Expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Research and development, net | 2014226 |  |  | 2014226 |
| &nbsp;&nbsp;&nbsp;General and administrative | 6674473 | 307650 |  | 6982123 |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 538321 | 63395 |  | 601716 |
| &nbsp;&nbsp;&nbsp;Transaction costs | 5620436 | 2210594 |  | 7831030 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 175902 |  |  | 175902 |
| &nbsp;&nbsp;&nbsp;Provision for credit losses |  | 129535 | (129535) **A** |  |
| &nbsp;&nbsp;&nbsp;Impairment | 14119955 |  |  | 14119955 |
| &nbsp;&nbsp;&nbsp;Foreign currency transaction gain | (119103) | - | - | (119103) |
|  | 29024210 | 2711174 | (129535) | 31605849 |
| **Loss from operations** | (28954769) | (264842) | 129535 | (31450076) |
| **Other income / (expenses)** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Changes in fair value of financial liabilities | 34333573 |  | (34333573) **B** |  |
| &nbsp;&nbsp;&nbsp;Finance expense | (7733314) | (223819) | 1093491 **C** | (6991671) |
|  |  |  | (117154) **D** |  |
|  |  |  | (10875) **D** |  |
|  | 26600259 | (223819) | (33368111) | (6991671) |
| **Loss before taxes** | **(2354510)** | **(2848661)** | **(33238576)** | **(38441747)** |
| &nbsp;&nbsp;&nbsp;Current income tax recovery (expense) | 5 | (283) | - | (278) |
| **Net loss** | $**(2354505)** | $**(2848944)** | $**(33238576)** | $**(38442025)** |
| **Loss per share – basic and diluted** | $(13.47) |  |  | $(157.05) |
| **Weighted average number of shares outstanding – basic and diluted** | 174842 |  |  | 244772 |

---

**UNAUDITED PRO FORMA CONDENSED COMBINED AND CONSOLIDATED STATEMENT OF OPERATIONS FOR THE YEAR ENDED JUNE 30, 2024**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Legacy Grafiti<br> (Historical)** | **Legacy Damon<br> (Historical)** | **Transaction <br> accounting <br> adjustments** | **Pro Forma <br> Combined** |
| Revenue | $336562 | $- | $- | $336562 |
| Cost of revenue | 82084 | - | - | 82084 |
| Gross profit | 254478 |  |  | 254478 |
| **Expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Research and development, net |  | 4550229 |  | 4550229 |
| &nbsp;&nbsp;&nbsp;General and administrative | 402625 | 4296231 |  | 4698856 |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 801539 | 986137 |  | 1787676 |
| &nbsp;&nbsp;&nbsp;Transaction costs | 280790 | 1626519 |  | 1907309 |
| &nbsp;&nbsp;&nbsp;Amortization of intangibles |  |  | 16000 **E** | 16000 |
| &nbsp;&nbsp;&nbsp;Depreciation |  | 303424 |  | 303424 |
| &nbsp;&nbsp;&nbsp;Provision for credit losses | 108568 |  | (108568) **A** |  |
| &nbsp;&nbsp;&nbsp;Gain from release of lease obligation |  | (42297) |  | (42297) |
| &nbsp;&nbsp;&nbsp;Foreign currency transaction gain | - | (235871) | - | (235871) |
|  | 1593522 | 11484372 | (92568) | 12985326 |
| **Loss from operations** | (1339044) | (11484372) | 92568 | (12730848) |
| **Other expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Changes in fair value of financial liabilities |  | (18424992) | 18424992 **B** |  |
| &nbsp;&nbsp;&nbsp;Loss on debt settlement |  | (785377) |  | (785377) |
| &nbsp;&nbsp;&nbsp;Finance expense | (9314) | (3273507) | 1793574 **C** | (2413247) |
|  |  |  | (315000) **D** |  |
|  |  |  | (609000) **D** |  |
|  | (9314) | (22483876) | 19294566 | (3198624) |
| **Loss before taxes** | **(1348358)** | **(33968248)** | **19387134** | **(15929472)** |
| &nbsp;&nbsp;&nbsp;Current income tax expense | - | - | - | - |
| **Net loss** | $**(1348358)** | $**(33968248)** | $**19387134** | $**(15929472)** |
| **Loss per share – basic and diluted** | $(46.82) | $(348.59) |  | $(97.42) |
| **Weighted average number of shares outstanding – basic and diluted** | 28800 | 97444 |  | 163508 |

---

**NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED AND CONSOLIDATED**

**FINANCIAL INFORMATION**

**Note 1. Basis of Presentation**

The unaudited pro forma condensed combined and consolidated financial information does not give effect to any anticipated synergies, operating efficiencies, tax savings, or cost savings that may be associated with the spin-off and the Business Combination. The unaudited pro forma condensed combined and consolidated financial information is not necessarily indicative of what the actual results of operations and financial position would have been had the spin-off and the Business Combination and related transactions taken place on the dates indicated, nor are they indicative of the future consolidated results of operations or financial position of the post-combination company. They should be read in conjunction with the historical financial statements and notes thereto of Legacy Damon and Legacy Grafiti.

***Unaudited Pro Forma Condensed Combined and Consolidated Statements of Operations***

The historical financial information of Damon was derived from the unaudited financial statements of Damon Inc. for the nine months ended March 31, 2025, and the audited consolidated financial statements of Legacy Damon for the year ended June 30, 2024, included elsewhere in this Offering Circular. The historical financial information of Damon for the nine months ended March 31, 2025, reflects Legacy Damon's activity for the period from July 1, 2024 to November 12, 2024, and the combined Company's activity from November 13, 2024 to March 31, 2025. The historical financial information of Grafiti for the nine months ended March 31, 2025 is adjusted for acquisition of Legacy Grafiti and consists of Legacy Grafiti's activity for the period July 1, 2024 to November 12, 2024 derived from Legacy Grafiti's historical books and records. The historical financial information of Legacy Grafiti for the year ended June 30, 2024, consists of the carve-out financial statements of Grafiti UK, as Legacy Grafiti was the parent non-operating holding company of Grafiti UK and the operations of Grafiti following the carve-out from XTI on December 27, 2023, and was derived from the audited financial statements of Legacy Grafiti for the year ended June 30, 2024, included elsewhere in this Offering Circular.

**Note 2. Accounting Policies**

Following the consummation of the Business Combination, management performed a comprehensive review of the two entities' accounting policies. As a result of the review, management did not identify any differences that would have a material impact on the unaudited pro forma condensed combined and consolidated financial information. As a result, the unaudited pro forma condensed combined and consolidated financial information does not assume any differences in accounting policies.

**Note 3. Estimated Purchase Price Consideration**

Estimated purchase price of $11,123,075 related to the Business Combination is comprised of the following components:

---

| | |
|:---|:---|
| Equity consideration | $11123075 |
| **Total consideration** | $**11123075** |

---

The estimated fair value of common stock of $11,123,075 included in the total equity consideration is based on 4,615,384 shares of common stock of the post-merger Damon Inc. common stock. The fair value of each share was determined to be $2.41, which was the closing price after one day of trading on November 18, 2024 of the combined company (Damon Inc.). Management notes that the closing price after one day of trading was determined to be the level 1 input for fair market value since the listing agent determined the beginning of day share price at $4 per share and active trading on Nasdaq resulted in the observable market participant impact to result in $2.41 per share.

The Business Combination is considered a reverse acquisition. As such, the acquisition-date fair value of the consideration transferred is calculated based on the number of equity interests Damon would have had to issue to shareholders of Grafiti to obtain the same ownership interest in Pubco. Any excess of the consideration transferred was allocated to goodwill.

**Note 4. Adjustments to Unaudited Pro Forma Condensed Combined and Consolidated Financial Information**

The unaudited pro forma condensed combined and consolidated financial information has been prepared to illustrate the effect of the Business Combination and related transactions and has been prepared for informational purposes only.

The following unaudited pro forma condensed combined and consolidated financial information has been prepared in accordance with Article 11 of Regulation S-X. The unaudited pro forma condensed combined and consolidated financial information has been prepared to illustrate the effect of the Business Combination and related transactions and has been prepared for informational purposes only. The Company includes subsequent financing transactions and transaction accounting adjustments in the unaudited pro forma condensed combined and consolidated financial information as if they had occurred as of July 1, 2023.

The pro forma basic and diluted earnings per share amounts presented in the unaudited pro forma condensed combined and consolidated statement of operations are based upon the number of shares of Pubco Common Stock outstanding, assuming the Business Combination and related transactions occurred on July 1, 2023.

**Transaction Accounting Adjustments to Unaudited Pro Forma Condensed Combined and Consolidated Statement of Operations**

The transaction accounting adjustments included in the unaudited pro forma condensed combined and consolidated statement of operations for the year ended June 30, 2024 and for the nine months ended March 31, 2025 are as follows:

A. Represents an adjustment to eliminate the
 current expected credit loss provision recorded for the Legacy Grafiti Promissory Note loaned to Legacy Damon in the amounts of $129,535
 and $108,568 for the nine months ended March 31, 2025 and for the year ended June 30, 2024, respectively, as this financing became
 an intercompany loan upon closing of the Business Combination. In connection with the promissory note agreement dated June 26, 2024,
 Legacy Damon had a senior secured promissory note with Legacy Grafiti with interest rate at 10.0% per annum and maximum aggregate
 principal amount of $1,150,000. Upon completion of the Business Combination, the balance of the promissory note was eliminated in
 consolidation. Grafiti recognized allowance for credit losses of $129,535 and $108,568 for the period from July 1, 2024 to November
 12, 2024 and the year ended June 30, 2024, respectively. The unaudited pro forma condensed combined and consolidated statement of
 operations include a pro forma adjustment for the elimination of the credit losses, to account for the impact of this agreement following
 the close of the Business Combination.

B. Represents adjustment to remove the loss due to the
 change in fair value related to Legacy Damon's convertible notes and SAFE financial liabilities, as these instruments are assumed
 to have been converted into common equity as if the Business Combination had taken place on July 1, 2023. For the year ended June
 30, 2024, Damon recorded a loss of $13,011,887, a loss of $592,543 for the convertible notes and SAFE financial liabilities, and
 a loss of $4,820,562 on warrant liabilities, respectively, for a total adjustment of $18,424,992. For the nine months ended March
 31, 2025, Legacy Damon recorded a gain of $34,333,573 for the convertible notes.

C. Represents adjustment to eliminate interest expense
 on the convertible notes for the nine months ended March 31, 2025 and for the year ended June 30, 2024 of $1,093,491 and $1,793,574,
 respectively, as these instruments are assumed to have been converted into common equity as if the Business Combination had taken
 place on July 1, 2023.

D. Represents adjustment to record: (1) the
 amortization of the unamortized prorated debt discount and issuance costs of $10,875; and (2) the interest incurred of $117,154 related
 to the amount held in escrow under the terms of the Grafiti Promissory Note with Streeterville LLC for the period from July 1, 2024
 to November 12, 2024. Additionally, adjustment D represents adjustment to record: (1) the amortization of the unamortized prorated
 debt discount and issuance costs of $609,000; and (2) the interest incurred of $315,000 related to the amount held in escrow under
 the terms of the Grafiti Promissory Note with Streeterville LLC for the year ended June 30, 2024. $3,150,000 in escrow was released
 to the combined Company following the consummation of the Business Combination. The unaudited pro forma condensed combined and consolidated
 financial statements include pro forma adjustments on interest and amortization of debt discount and issuance costs for the $3,150,000
 in escrow as if they had occurred on July 1, 2023.

E. Represents incremental adjustments to record amortization of intangible assets
 acquired as if the Business Combination had taken place on July 1, 2023. The following table is a summary of information related
 to certain intangible assets acquired, including information used to calculate the amortization expense for each period presented:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Identified Intangible Assets** | **Fair Value** | **Years of<br> Amortization** | **For the<br> Nine Months<br> Ended<br> March 31, 2025** | **For the<br> Year <br> Ended<br> June 30,<br> 2024** |
| Customer list | $80000 | 5 | $- | $16000 |
| Total amortization expense |  |  | $- | $16000 |

---

**Note 5 Net Loss per Share**

Net loss per share was calculated using the historical weighted average shares outstanding, and the issuance of additional shares in connection with the Business Combination and the related transactions, assuming the shares were outstanding since July 1, 2023. As the Business Combination and the related transactions are being reflected as if they had occurred at the beginning of the earliest period presented, the calculation of weighted average shares outstanding for basic and diluted net loss per share assumes that the shares issuable relating to the Business Combination and related transactions have been outstanding for the entirety of all periods presented.

The unaudited pro forma condensed combined and consolidated financial information has been prepared for the nine months ended March 31, 2025 and for the year ended June 30, 2024:

---

| | | |
|:---|:---|:---|
|  | **Nine Months<br> Ended<br> March 31,<br> 2025<sup>(1)</sup>** | **Year <br> Ended<br> June 30,<br> 2024<sup>(1)</sup>** |
| Pro forma net loss | $(38442025) | $(15929472) |
| Weighted average shares outstanding - basic and diluted | 244772 | 163508 |
| Pro forma net loss per share - basic and diluted | $(15705) | $(97.42) |
| &nbsp;&nbsp;&nbsp;*Excluded securities:<sup>(2)(3)</sup>* |  |  |
| Options | 10642 | 15586 |
| Warrants | 950001 | 9530 |

---

<sup>(1)</sup> Pro forma net loss per share includes the related pro forma adjustments as referred to within the section "Unaudited Pro Forma Condensed Combined and Consolidated Financial Information."

<sup>(2)</sup> The potentially dilutive outstanding securities were excluded from the computation of pro forma net loss per share, basic and diluted, because their effect would have been anti-dilutive.

<sup>(3)</sup> The potentially dilutive outstanding securities of Legacy Damon to be exchanged for securities of Pubco are adjusted to reflect the exchange ratio associated with the Business Combination.

**Management's Discussion and Analysis of Financial Condition<br> and Results of Operations**

The following discussion and analysis of the financial condition and results of operations of Damon should be read in conjunction with the accompanying interim unaudited condensed consolidated financial statements of Damon as of March 31, 2025, consolidated financial statements of Damon Motors for the fiscal years ended June 30, 2024, 2023 and 2022, and related notes included elsewhere in this offering circular. Some of the information contained in this discussion and analysis or set forth elsewhere, including information with respect to its plans and strategy for our business and related financing, includes forward-looking statements that involve risks, uncertainties and assumptions. You should read the "Cautionary Statement Regarding Forward-Looking Statements" and "Risk Factors" for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.

Unless otherwise noted, all historical information prior to the quarter ended December 31, 2024, in which the Business Combination occurred, as discussed in this section reflects the operations of Damon Motors, which is deemed the accounting acquirer in the Business Combination.

"**Fiscal 2024**," "**Fiscal 2023**" and "**Fiscal 2022**" are to Damon Motors's fiscal years ended June 30, 2024, 2023 and 2022, respectively.

**Business Overview**

**Our Personal Mobility Products Development Business Through Damon Motors**

Damon Inc, through its wholly-owned subsidiary, Damon Motors, is developing electric motorcycles and other personal mobility products that seek to empower the personal mobility industry through innovation, data intelligence and strategic partnerships. Damon Motors is developing technology and investing in the capabilities to lead an integrated personal mobility ecosystem from individual travels to last mile delivery. With decades of combined management and engineering experience across the team's careers, and a commitment to low carbon personal mobility solutions, Damon Motors is seeking to introduce existing enthusiasts to high-performance electric products while bringing new riders to the motorcycle community with first of its kind advances in zero emissions motorcycle performance, safety, connectivity and AI.

Founded in 2017, Damon Motors started reimagining the future of motorcycling by means of advanced safety design, electric vehicle powertrain technology and user experience. In 2019, Damon Motors took its first alpha prototype motorcycles and safety systems into the field to test the concept. In 2021, Damon Motors expanded its operations and research and development expertise to accelerate the engineering and development of its HyperDrive platform drive unit and the HyperSport motorcycle. Through core technology advancements, Damon Motors electric motorcycles are in prototype phase of product validation.

Damon Motors' electric vehicles are developed with a set of proprietary design principles that elevate the brand, deliver differentiated riding experiences and bring emotion to electric propulsion. The initial product portfolio of motorcycle models will be built upon and utilize a single powertrain platform called HyperDrive™. As a patented, monocoque-constructed battery-chassis, HyperDrive houses a proprietary 150 kW 6-phase liquid cooled IPM motor-gearbox and proprietary electronics. This platform approach establishes a capital-efficient path to grow the product line to meet a wide range of future segments and price points, while also supporting a wide range of future motorcycle models and power sizes that share as much as 85 percent common parts. By using the frame of the battery as the motorcycle's chassis, HyperDrive also achieves valuable weight and cost reduction advantages. With 150 kW of power at its disposal, HyperDrive has been specifically designed to compete with the performance of market leaders in the high-performance motorcycle market, whether internal combustion or electric. Thanks to the energy modularity designed into it, HyperDrive-based motorcycles can be detuned in power, energy and thus cost to support 500 – 1500cc power equivalent classes of motorcycles in both the North American and European markets, with price points ranging from $20,000 - $80,000.

The HyperDrive platform is contrasted by the smaller, less powerful and lower cost HyperLite platform, currently in its early design phase. HyperLite will be developed using a very similar design architecture as HyperDrive, enabling the production of a range of light weight, low to medium cost motorcycles and scooters with milder levels of horsepower that are more common in overseas and developing markets. With these two platforms paired with Damon Motors' three patented cornerstone technologies, CoPilot™, Shift™ and its AI-enabled cloud platform. Damon Motors' long-term objective is to build a premium, high-tech, electric motorcycle company that rivals the largest incumbents in both profit and annual volume, by providing a technologically enhanced riding experience that is not currently available from other manufacturers.

CoPilot provides a novel rider assistance and warning system integrated into the motorcycle. Shift allows the handlebars and foot pegs to mechatronically adjust on the fly, addressing issues of ergonomic comfort and allowing users to select different riding positions for changing conditions such as a lower, more aerodynamic position for highway use or a more upright position for urban use. Its AI-enabled cloud will collect environmental and situational data that, paired with over-the-air software updates, can drive a continual loop of collision warning improvements, with an aim to further reduce accident probability over time.

The commercial production of Damon Motors' motorcycles is expected to commence after passing various internal and external tests and undergoing a self-certification process required for US-bound vehicle homologation. These tests include: the completion of Damon Motors' ride quality and long-term durability testing, completion of FCC Title 47 certification for the onboard charger, completion of UN 38.3 battery testing, completion of Damon Motors' internal battery testing, extreme temperature operation verification, brake testing per FMVSS, and an internal and external review of FMVSS compliance with Damon Motors engineering subcontractor TUV of Germany.

**Our SAVES Distribution Business Through Grafiti Limited**

Damon, through its wholly-owned subsidiary, Grafiti Limited, distributes in the UK and certain other European countries data analytics and visualization software products referred to as SAVES primarily for scientists and engineers. Grafiti Limited products can be downloaded to a user's desktop. These products help scientific research in the health and life sciences domain in the discovery of new drugs, in the study of the efficacy of established drugs and therapies, and in epidemic propagation research, among other applications. Engineers use our products for a multitude of applications which include, but are not limited to, conducting surface modelling analysis and curve fitting in order to design new engineering processes, studying signal attenuation and propagation in radio engineering. Potential automobile and motorcycle applications could include surface panel design for aerodynamics, aesthetic symmetry, and calculated asymmetry among others. We believe the Grafiti Limited regression analysis product could also be used for predicting vehicle sharing demand and pricing trends in various markets based on a wide range of variables.

Grafiti Limited's strategy is to build a broader, long term customer base by increasing its sales of Grafiti Limited's product offerings which will include cloud and Macintosh compatible data analytics and statistical visualization software products. We believe this will enable the Grafiti Limited business to focus on generating more recurring revenues in the future.

Grafiti Limited was formed by the Parent on May 13, 2020, as a distribution arm for its SAVES products in the UK market and part of the European market.

**Our Corporate Strategy**

We are pursuing a corporate strategy focused on developing a business offering of end-to-end solutions ranging from personal mobility products to the collection of data to delivering insights from that data to our customers with a focus on safety and data intelligence and engineering services. In connection with such strategy and to facilitate our long-term growth, we continue to evaluate various strategic transactions, including acquisitions of companies with personal mobility products, technologies and IP that complement those goals by adding technology, differentiation, customers and/or revenue. We are primarily looking for accretive acquisitions that have business value and operational synergies, but will be opportunistic for other strategic and/or attractive transactions. We believe these complementary technologies will add value to the Company and allow us to provide a comprehensive integrated personal mobility ecosystem to our customers. In addition, we may seek to expand our capabilities around safety, security, artificial intelligence, augmented reality and virtual reality or other high growth sectors. Candidates with proven technologies and personal mobility products that complement our overall strategy may come from anywhere in the world, as long as there are strategic and financial reasons to make the acquisition. We are also exploring opportunities that will supplement our revenue growth. We are primarily looking for accretive acquisitions that have business value and operational synergies, yet also opportunistic for other strategic and/or attractive transactions that we believe may increase overall shareholder value, which may include, but not be limited to, other alternative investment opportunities, such as minority investments and joint ventures. If we make any acquisitions in the future, we expect that we may pay for such acquisitions using our equity securities and/or cash and debt financings in combinations appropriate for each acquisition.

**Recent Transactions**

***Trust Shares Distribution in connection with Spin-Off of Grafiti Holding***

On October 23, 2023, Parent and Grafiti Holding entered into a Separation and Distribution Agreement, pursuant to which all of the outstanding shares of Grafiti Limited were transferred to Grafiti Holding, such that on December 26, 2023, Grafiti Limited became a wholly-owned subsidiary of Grafiti Holding. Grafiti Limited was formed by the Parent on May 13, 2020 as a distribution arm for its SAVES products in the United Kingdom market and part of the European market. Following the reorganization, and in connection with the spin-off of Grafiti Holding from Parent, on December 27, 2023 (the "**record date**"), all of the outstanding common shares of the Company (the "**Trust Shares**") were transferred to the Trust, to be held for the benefit of holders of the Parent's common stock, preferred stock and those outstanding warrants that are contractually entitled to participate in the distribution, on a pro rata basis as of the record date (collectively, the "**participating Parent securityholders**"). On November 12, 2024, the Trust Shares were delivered to participating Parent securityholders, on a pro rata at a ratio of 1 for 50 resulting in the distribution of 3,536,746 Trust Shares to participating Parent securityholders.

***Completion of Business Combination***

On October 23, 2023, the Company, Parent, Damon Motors, and 1444842 B.C. LTD ("**Amalco Sub**") entered into 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**"). On November 13, 2024, Damon Motors and Amalco Sub amalgamated, with Damon Motors continuing as a wholly owned subsidiary of the Company (the "**Amalgamation**"). Following the Amalgamation, the Company was renamed "Damon Inc." (also referred to herein as the "**combined company**"). Pursuant to the Plan of Arrangement under the laws of British Columbia, as contemplated in the Damon Business Combination Agreement, securityholders of Damon Motors exchanged their securities of Damon Motors for amalgamation consideration consisting of:

&nbsp;&nbsp;&nbsp;&nbsp;(i) 14,764,803 Common Shares of the Company,

&nbsp;&nbsp;&nbsp;&nbsp;(ii) 1,391,181 multiple voting shares of the
 Company, which were convertible into Common Shares of the Company on a 1 for 1 basis, issued
 to Jay Giraud, the combined company's CEO and director as of the closing, and its controlled
 entity,

&nbsp;&nbsp;&nbsp;&nbsp;(iii) warrants to purchase 2,186,498 Common
 Shares of the Company at an exercise price of $7.81 per share, with terms substantially similar
 to those of Damon Motors's warrants, issued to former Damon Motors warrant holders,
 and

&nbsp;&nbsp;&nbsp;&nbsp;(iv) options to purchase 1,942,127 Common
 Shares at exercise prices between $0.57 and $12.73, issued to former Damon Motors option
 holders under the Company's equity incentive plans.

The exchanges are based on an exchange ratio determined according to the formula in the Damon Business Combination Agreement.

The combined company commenced trading on the Nasdaq Global Market on November 18, 2024, under the symbol "DMN". The Company's common shares have been delisted from Nasdaq recently and began trading on the OTC Pink Current Market on May 20, 2025. The OTC Pink Current Market became the OTCID Basic Market effective as of July 1, 2025.

As a result of the closing of the Business Combination, a change in control of the Company has occurred, and Damon Motors became a wholly owned subsidiary of the Company. Following the issuance of the amalgamation consideration pursuant to the Plan of Arrangement, the Company's security holders immediately prior to the effective time of the Amalgamation (the "**Effective Time**") retained beneficial ownership of approximately 18% of the outstanding Common Shares of the Company on a fully-diluted basis and Damon Motors security holders immediately prior to the Effective Time acquired beneficial ownership of Common Shares amounting to approximately 82% of the outstanding common shares of the Company on a fully-diluted basis.

Following the resignation of Jay Giraud from all officer and director positions with the Company as of December 4, 2024, all the multiple voting shares held by Mr. Giraud and his wholly-owned company were converted automatically into Common Shares on a one-for-one basis. After giving effect to the conversion and as of the date of this filing, the Company has only common shares outstanding, with no multiple voting shares remaining outstanding.

**Financing Agreements**

***Streeterville June 2024 Note and Second Amendment to Note***

On June 26, 2024, Grafiti Holding and Streeterville entered into the Note Purchase Agreement, pursuant to which Grafiti Holding sold a secured promissory note in an aggregate original principal amount of $6,470,000 in a private offering in reliance on exemptions from registration under applicable securities laws. The Note and the Note Purchase Agreement were amended by Amendment No. 1 as of October 31, 2024.

The Note carries an original issue discount of $1,450,000 and $20,000 of issuance costs to cover legal, accounting, due diligence, monitoring and other transaction costs. On the same day, Streeterville paid the purchase price of $5,000,000 as follows: (a) $1,150,000 to Grafiti Holding; (b) $350,000 to Damon Motors as a loan from Grafiti Holding to Damon Motors, and (c) $3,500,000 into escrow, which was distributed to Grafiti Holding upon satisfaction of certain conditions including the consummation of the Business Combination and the listing of the post-closing company's common shares on Nasdaq. Additionally, starting on the earlier of 13 months after the closing of the Business Combination or January 1, 2026, Streeterville may require the borrower to redeem up to one-sixth of the note's initial principal and accrued interest monthly, and any unexercised redemption amounts can be carried over to future months.

In connection with the Streeterville loan transaction, Damon Motors Corporation, a Delaware corporation, Damon Subsidiary, and Damon Motors, each entered into a Guaranty, dated as of June 26, 2024, whereby Damon Motors and the Damon Subsidiary guaranteed the performance of Grafiti Holding's obligations under the Note. Additionally, Grafiti Holding's obligations under the Note are secured by a lien on the promissory note issued by Damon Motors to Grafiti Holding and all related claims, rights, and interests in such note issued by Damon Motors, pursuant to a Security Agreement between Streeterville and Grafiti Holding, dated June 26, 2024.

On February 27, 2025, the Company and Streeterville entered into the Note Amendment to the Note originally issued by the Company to Streeterville on June 26, 2024, in an original principal amount of $6,470,000.

Pursuant to the Note Amendment, the parties have agreed to amend the Note to grant Streeterville the right to convert from time to time at its election, all or any portion of the outstanding balance of the Note into Conversion Shares. The number of Conversion Shares deliverable under a conversion notice will be equal to the amount of the outstanding balance of the Note being converted, divided by the conversion price, which is 90% of the lowest daily volume weighted average price of the Company's Common Shares reported by Bloomberg during the ten trading days preceding the delivery date of a conversion notice. This is subject to the Floor Price, which will be adjusted accordingly in the event of a share split or combination. If the Company issues any securities with a floor price less than $0.20 per share in the future, the Floor Price will automatically adjust to be equal to such lower floor price.

The Note Amendment contains an ownership limitation, pursuant to which the Company shall not effect any issuance of Conversion Shares to the extent that such issuance would cause Streeterville, together with its affiliates, to beneficially own a number of common shares exceeding 9.99% of the number of Common Shares outstanding on such date, including the Common Shares issuable upon such issuance.

In connection with the March Offering, the floor price under the June 2024 Note was adjusted to $0.0251, however, as a result of the reverse stock split on July 3, 2025, the adjusted floor price is $3.1375. We expect that the Floor Price will be further adjusted to $0.10 upon the first closing of any Common Shares sold under this Offering. As of July 21, 2025, the outstanding principal amount was partially repaid and reduced to $4,491,700, with an additional $668,527 in accrued unpaid interest, which may result in an issuance of 51,602,270 Common Shares, assuming a conversion price equal to $0.10 upon the first closing of any Common Shares sold under this Offering.

Additionally, as of July 21, 2025, the outstanding principal balance under the December 2024 SPA was $3,158,000, with an additional $147,370 in accrued unpaid interest. Streeterville may make purchases of Common Shares in satisfaction of outstanding pre-paid purchases pursuant to the pricing formula set forth in the December 2024 SPA. If the Company receives additional funding under the total $10,000,000 commitment or if Streeterville elects to purchase Common Shares in satisfaction of the outstanding balance under the December 2024 SPA, further issuances of Common Shares may occur.

***December 2024 Securities Purchase Agreement with Streeterville***

On December 20, 2024, we entered into the Streeterville Securities Purchase Agreement with Streeterville, as amended by the Amendment No. 1 to the Securities Purchase Agreement dated February 27, 2025. Under such agreement, the Company agreed to issue and sell to Streeterville one or more pre-paid purchases at an aggregate purchase price of up to the Total Commitment Amount ($10,000,000) for the purchase of the Company's common shares. As consideration for Streeterville's commitment, the Company also agreed to issue to Streeterville the Commitment Shares (343,053 Common Shares).

Each pre-paid purchase includes an original issue discount of 7% and accrues interest at an annual rate of 8%. For the initial pre-paid purchase, which closed on the Initial Closing Date, Streeterville paid $2,000,000, creating in an initial principal balance of $2,140,000.

Pursuant to the Streeterville Securities Purchase Agreement and a registration rights agreement entered into on the same date, the Company agreed to file the Registration Statement under the Securities Act, to register the resale of 18,000,000 Common Shares, including the Commitment Shares and Common Shares issuable pursuant to the pre-paid purchases. If the Registration Statement is declared effective within 90 days of the Initial Closing Date, which it was, and no default has occurred, and if requested by the Company, Streeterville will fund $1,000,000 for a second pre-paid purchase.

Within a committed two-year period, and subject to certain specified conditions, the Company may request the issuance of additional pre-paid purchases to Streeterville, with each purchase amount no less than $250,000, provided that the total outstanding balance of all pre-paid purchases does not exceed $3,000,000.

The proceeds from the pre-paid purchases are expected to be used for working capital and other corporate purposes. However, $100,000 from the initial pre-paid purchase funding, and 15% of the funding from subsequent pre-paid purchases, shall be used to repay the indebtedness under the Note issued to Streeterville in June 2024 with an original principal amount of $6,470,000.

Following the funding of each pre-paid purchase, Streeterville has the right, but not the obligation, to purchase from the Company its common shares not exceeding (i) the outstanding balance of the funded amount, and (ii) 9.99% beneficial ownership of the Company's outstanding Common Shares. The purchase price of the Common Shares will be the lower of (i) $1.50 or (ii) 90% of the lowest daily VWAP during the ten consecutive trading days immediately prior to the purchase notice date, but not less than the floor price, which is equal to 20% of the "Minimum Price" as defined under Nasdaq Listing Rule 5635(d) prior to the applicable closing. Under the Streeterville Securities Purchase Agreement, the Company agreed that, if applicable, it will seek the Required Shareholder Approval, and until such approval is obtained, the Company will not request additional pre-paid purchases that may cause the total amount of Common Shares issuable to exceed the Exchange Cap. However, since the Company is no longer listed on Nasdaq, the Required Shareholder Approval and Exchange Cap no longer apply.

The outstanding pre-paid purchases, unless reduced by the Company's sale of Common Shares to Streeterville as described, will remain outstanding and may be repaid in cash at the Company's option. There is no maturity date for the outstanding balance of the pre-paid purchases. Additionally, if certain triggering events occur, including (a) the VWAP of the Company's Common Shares falling below the floor price for at least five trading days within a seven-trading-day period, or (b) the Company having issued 75% of the shares under the Exchange Cap if an Exchange Cap applies, the Company must make monthly cash repayments of $350,000 in principal plus any accrued unpaid interest until the outstanding balance is fully repaid or the triggering event conditions are resolved. In an event of default as specified in the pre-paid purchase, Streeterville may accelerate repayment, requiring the outstanding balance to become immediately due, with a 10% increase to the principal and interest accruing at a rate of 18% per annum.

Under the Streeterville Securities Purchase Agreement, the Company has received an aggregate of $4,400,000 from Streeterville out of the Total Commitment Amount of $10,000,000, resulting in an outstanding principal balance of $4,708,000, excluding any accrued interest and prior to any purchase of common shares discussed below. Of the $4,400,000 received, a total of $460,000 has been used to repay the indebtedness under the secured promissory note issued to Streeterville in June 2024 with an original principal amount of $6,470,000.

As of July 21, 2025, Streeterville has purchased, and the Company has issued, a total of 65,068 (8,133,614 pre-reverse split 8,133,614) Common Shares to satisfy pre-paid purchases made through this date, based on the pricing formula described in the Streeterville Securities Purchase Agreement, and the outstanding principal balance has been reduced to $3,158,000, with an additional $147,370 in accrued interest.

***Termination of East West and Braebeacon Loan Documents***

On March 29, 2025, the Company entered into a letter agreement with Braebeacon Holdings Inc. ("**Braebeacon**") to formally terminate the following loan agreements, under which the Company received no loan funds prior to such termination: (i) the Note Purchase Agreement, dated November 13, 2024, between the Company and Braebeacon; (ii) the Secured Promissory Note, dated November 13, 2024, issued by the Company to Braebeacon; (iii) the Security Agreement, dated November 13, 2024, executed by the Company in favor of Braebeacon; (iv) the Security Agreement, dated November 13, 2024, executed by Damon Motors, Inc., a wholly owned subsidiary of the Company, in favor of Braebeacon; (v) the Intellectual Property Security Agreement, dated November 13, 2024, executed by Damon Motors, Inc. in favor of Braebeacon; (vi) the Guaranty, dated November 13, 2024, executed by Damon Motors, Inc. in favor of Braebeacon; and (vii) the Guaranty, dated November 13, 2024, executed by Damon Motors Corporation, a wholly owned subsidiary of the Company, in favor of Braebeacon.

**Completion of Registered Underwritten Offering** 

On March 20, 2025, in connection with the March Offering, the Company entered into an underwriting agreement (the "**Underwriting Agreement**") with Maxim Group LLC, as the sole underwriter (the "**Underwriter**"), pursuant to which the Company sold and issued: (i) 1,015,200 (pre-reverse stock split - 126,900,000) units (each a "**Unit**" and, collectively, the "**Units**") at a public offering price of $16.25 (pre-reverse stock split - $0.130) per Unit, with each Unit consisting of (A) one Common Share and (B) one Series A Warrant (each a "**Series A Warrant**" and collectively, the "**Series A Warrants**") to purchase one Common Share for cash or otherwise acquire such greater number of Common Shares as determined in accordance with the provisions of the Series A Warrant upon an alternate cashless exercise option; and (ii) 50,760 (pre-reverse stock split - 6,345,000) warrants to purchase Common Shares to the Underwriter (each a "**Underwriter's Warrant**" and, collectively, the "**Underwriter's Warrants**") for cash or otherwise acquire such greater number of Common Shares as determined in accordance with the provisions of the Underwriter's Warrant upon an alternate cashless exercise option. The Underwriter's Warrants are identical to the Series A Warrants except that the Underwriter's Warrants are subject to a 180-day lock-up pursuant to Rule 5110(e)(1) of FINRA.

Each Series A Warrant is exercisable at an initial exercise price of $24.375 (pre-reverse stock split - $0.195) per share (150% of the public offering price per Unit). The Series A Warrants will be exercisable from issuance and will expire two and one-half (2.5) years after issuance. Additionally, under the alternate cashless exercise option of the Series A Warrants, during the period of 90 calendar days following the issue date of the Series A Warrants, a holder of the Series A Warrant has the right to receive, without payment of any additional cash to the Company, an aggregate number of shares equal to the product of (x) the aggregate number of Common Shares that would be issuable upon a cash exercise of the Series A Warrant and (y) two and a half (2.5). Accordingly, the Company believed it was highly unlikely that a holder of the Series A Warrants would pay an exercise price in cash to receive one Common Share when the holder could instead choose the alternate cashless exercise option and pay no cash to receive 2.5 Common Shares. As a result, the Company will likely not receive any additional funds and does not expect to receive any additional funds upon the exercise of the Series A Warrants.

In addition, at 4:01 p.m. Eastern time on the 7<sup>th</sup> trading day after the date of issuance (the "**First Reset Date**"), the exercise price of the Series A Warrants was reset to $6.275 (pre-reverse stock split - $0.0502) per share, which equaled the initial floor price based on the first reset formula provided in the Series A Warrants; and the number of shares issuable upon exercise was increased such that the aggregate exercise price of the Series A Warrants on the issuance date for the Common Shares underlying the Series A Warrants then outstanding remained unchanged. Subsequently, at 4:01 p.m. Eastern time on the 15<sup>th</sup> trading day after the date of issuance (the "**Second Reset Date**"), the exercise price of the Series A Warrants was further reset to $3.1375 (pre-reverse stock split - $0.0251) per share, which equaled the second floor price based on the second reset formula provided in the Series A Warrants; and the number of shares issuable upon exercise was further increased such that the aggregate exercise price of the Series A Warrants on the issuance date for the Common Shares underlying the Series A Warrants then outstanding remained unchanged.

Under the Underwriting Agreement, the Company granted the Underwriter an option to purchase from the Company either up to an additional 152,280 (pre-reverse stock split - 19,035,000) Common Shares at a price of $16.125 (pre-reverse stock split - $0.129) per share or up to 152,280 (pre-reverse stock split - 19,035,000) Series A Warrants to purchase Common Shares at a price of $0.125 (pre-reverse stock split - $0.001) per warrant, or a combination of the two (the "**Overallotment Option**"). On March 21, 2025, the Underwriter exercised its Overallotment Option with respect to 152,280 (pre-reverse stock split - 19,035,000) Series A Warrants.

The Underwriter received a cash fee of six and a half percent (6.5%) of the aggregate gross proceeds raised in the March Offering as underwriting discounts and commissions. The Company paid $100,000 of the Underwriter's out-of-pocket accountable expenses in connection with the March Offering.

The March Offering closed on March 21, 2025. The net proceeds to the Company from the March Offering were approximately $15 million, after deducting underwriting discounts and commissions and other offering expenses payable by the Company. The Company intends to use the net proceeds for working capital and general corporate purposes, including research and development as well as marketing and sales of the Company's products. Additionally, the Company used approximately 14% of the net proceeds to repay the outstanding balance of the June 2024 Note.

The March Offering was made pursuant to a registration statement on Form S-1 (File No. 333-285872), which was initially filed with the SEC on March 18, 2025, and declared effective by the SEC on March 20, 2025, and a registration statement on Form S-1 (File No. 333- 285981), which was filed with the SEC on March 20, 2025 and became effective upon filing. The final prospectus relating to the March Offering was filed with the SEC on March 21, 2025*.***

**Subsequent Exercise of Series A Warrants**

Subsequent to March 31, 2025, the Company has issued an aggregate of 15,573,684 (pre-reverse stock split - 1,946,710,549) Common Shares upon exercise of the Series A Warrants pursuant to the alternate cashless exercise provision. The fair value of the exercised warrants in the amount of $14,396,075 were recorded to equity. As of July 21, 2025, 19 Series A Warrants (pre-reverse split – 2,352 Series A Warrants) remain outstanding, which may result in the issuance of up to 19 additional Common Shares (pre-reverse split – 2,352 additional Common Shares).

**Technical Design Agreement**

On April 4, 2025, the Company entered into a Technical Design Agreement (the "**Agreement**") with Engines Engineering S.p.a. ("**EE**"), an Italian corporation specializing in vehicle engineering, design and development, to provide such services for development of the Company's HyperSport Race electric motorcycle (the "**Project**").

Under the Agreement, EE will be responsible for delivering services in multiple areas including technical compliance, component selection, development and validation testing, and prototyping. The Project is structured into nine development phases continuing through March 2026, with specific milestones and deliverables required at each phase.

The total contract value of the Agreement is €1,581,670, with half of the amount invoiced on the date of the Agreement, and the remaining half tied to milestone-based deliverables for each phase of the Project, to be invoiced in installments following the Company's acceptance of the corresponding phase.

Pursuant to the Agreement, all work product developed under the Agreement will be owned by the Company upon full payment for the applicable phase, while EE retains ownership of its pre-existing intellectual property and grants the Company an irrevocable, perpetual, nonexclusive, worldwide and paid-up license to use such intellectual property and create derivative works from it when used as part of or in support of the work product developed under the Agreement.

**Critical Accounting Estimates**

Our unaudited condensed consolidated financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles ("**GAAP**"). In connection with the preparation of our financial statements, we are required to make assumptions and estimates about future events, and apply judgments that affect the reported amounts of assets, liabilities, revenue, expenses and the related disclosures. We evaluate our critical accounting estimates and assumptions on an ongoing basis. Our estimates are based on historical experience, current trends, and various other assumptions that we believe to be reasonable under the circumstances to ensure that our financial statements are presented fairly and in accordance with GAAP. To the extent that there are differences between our estimates and actual results, our future financial statement presentation, financial condition, results of operations, and cash flows may be affected. Because future events and their effects cannot be determined with certainty, actual results could differ from our assumptions and estimates, and such differences could be material.

There have been no significant changes to our critical accounting estimates as compared to those disclosed in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" for the year ended June 30, 2024 and 2023 included in the information statement filed as Exhibit 99.1 to the amended registration statement on Form 10-12B filed with the SEC on September 26, 2024, except as disclosed below.

***Revenue Recognition***

The Company recognizes revenue when control of the promised products or services is transferred to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products or services. Our licenses are sold as perpetual or term licenses and the arrangements may include maintenance services which are accounted for as separate performance obligations. In determining how revenue should be recognized, a five-step process is used, which requires judgment and estimates within the revenue recognition process. The most critical judgements required in applying ASC 606 *Revenue Recognition from Customers*, and our revenue recognition policy relate to the determination of distinct performance obligations.

● Revenue from licenses for on-premises software is recognized at a point in time when the software is made available to the customer.

● Software as a service revenue is recognized over time over the service period using a time-based measure, as the Company is providing continuous service and the customer simultaneously receives and consumes the benefits provided by the Company's performance as the services are performed.

We also consider whether an arrangement has any discounts, material rights, or specified future upgrades that may represent additional performance obligations. Discounts have not historically been significant, but we continue to monitor and evaluate these estimates based on historical experience, anticipated performance, and our best judgment. Renewals or extensions of licenses are evaluated as distinct licenses (i.e., a distinct good or service), and revenue attributed to the distinct service cannot be recognized until (1) the entity provides the distinct license (or makes the license available) to the customer and (2) the customer is able to use and benefit from the distinct license. If any of these judgments were to change it could cause a material increase or decrease in the amount of revenue we report in a particular period.

***Long-Lived Assets - Impairment Assessments***

Long-lived assets are grouped for recognition and measurement of impairment at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. The impairment test for long-lived assets requires us to assess the recoverability of our long-lived assets by comparing their net carrying value to the sum of undiscounted estimated future cash flows directly associated with and arising from our use and eventual disposition of the assets. If the net carrying value of a group of long-lived assets exceeds the sum of related undiscounted estimated future cash flows, we would be required to record an impairment charge equal to the excess, if any, of net carrying value over fair value.

When assessing the recoverability of our long-lived assets, which include property and equipment, we make assumptions regarding estimated future cash flows and other factors. Some of these assumptions involve a high degree of judgment and bear a significant impact on the assessment conclusions. Included among these assumptions are estimating undiscounted future cash flows, including the projection of comparable sales, operating expenses, capital requirements for maintaining property and equipment and residual value of asset groups. We formulate estimates from historical experience and assumptions of future performance, based on business plans and forecasts, recent economic and business trends, and competitive conditions. In the event that our estimates or related assumptions change in the future, we may be required to record an impairment charge.

We evaluate the remaining useful lives of long-lived assets whenever events or circumstances indicate that a revision to the remaining period of amortization is warranted. Such events or circumstances may include (but are not limited to): the effects of obsolescence, demand, competition, and/or other economic factors including the stability of the industry in which we operate, known technological advances, legislative actions, or changes in the regulatory environment. If the estimated remaining useful lives change, the remaining carrying amount of the long-lived assets would be amortized prospectively over that revised remaining useful life. We have determined that there were no events or circumstances during the years ended June 30, 2024, 2023 or 2022, which would indicate a revision to the remaining amortization period related to any of our long-lived assets. Accordingly, we believe that the current estimated useful lives of long-lived assets reflect the period over which they are expected to contribute to future cash flows and are therefore deemed appropriate.

Based on its assessments, the Company has not recorded any impairment of long-lived assets during the years ended June 30, 2024, 2023 and 2022.

***Deferred Income Taxes***

In accordance with ASC 740 "Income Taxes" ("ASC 740"), management routinely evaluates the likelihood of the realization of its income tax benefits and the recognition of its deferred tax assets. In evaluating the need for any valuation allowance, management will assess whether it is more likely than not that some portion, or all, of the deferred tax asset may not be realized on a jurisdictional basis. Ultimately, the realization of deferred tax assets is dependent upon the generation of future taxable income during those periods in which temporary differences become deductible and/or tax credits and tax loss carry-forwards can be utilized. In performing its analyses, management considers both positive and negative evidence including historical financial performance, previous earnings patterns, future earnings forecasts, tax planning strategies, economic and business trends and the potential realization of net operating loss carry-forwards within a reasonable timeframe. To this end, management considered (i) that we have had historical losses in the prior years and cannot anticipate generating a sufficient level of future profits in order to realize the benefits of our deferred tax asset; (ii) tax planning strategies; and (iii) the adequacy of future income as of June 30, 2024, June 30, 2023 and June 30, 2022, based upon certain economic conditions and historical losses through June 30, 2024, June 30, 2023 and June 30, 2022. After consideration of these factors, management deemed it appropriate to establish a full valuation allowance with respect to the deferred tax assets for the Company.

A liability for "unrecognized tax benefits" is recorded for any tax benefits claimed in the Company's tax filings that do not meet these recognition and measurement standards. As of June 30, 2024, June 30, 2023 and June 30, 2022, no liability for unrecognized tax benefits was required to be reported. The guidance also discusses the classification of related interest and penalties on income taxes. The Company's policy is to record interest and penalties on uncertain tax positions as a component of income tax expense. No interest or penalties were recorded during the years ended June 30, 2024, 2023 and 2022.

**Warrant Liabilities**

The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant's specific terms and applicable authoritative guidance in the FASB Accounting Standards Codification ("**ASC**") 480, Distinguishing Liabilities from Equity ("**ASC 480**") and ASC 815, Derivatives and Hedging ("**ASC 815**"). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company's own ordinary shares, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding.

For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter.

**Results of Operations**

The following financial information is for the three and nine months ended March 31, 2025 and 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **March 31,**<br>**2025** | **March 31,**<br>**2024** | **March 31,**<br>**2025** | **March 31,**<br>**2024** |
| Revenue | $81411 | $- | $130934 | $- |
| Cost of revenue | 40161 | - | 61493 | - |
| Gross profit | 41250 |  | 69441 |  |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Research and development, net | 959672 | 1805747 | 2014226 | 3760318 |
| &nbsp;&nbsp;&nbsp;General and administrative | 3702113 | 1531065 | 6674473 | 4895715 |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 185776 | 201509 | 538321 | 774481 |
| &nbsp;&nbsp;&nbsp;Transaction costs | 203000 |  | 5620436 |  |
| &nbsp;&nbsp;&nbsp;Depreciation | 61090 | 74791 | 175902 | 229643 |
| &nbsp;&nbsp;&nbsp;Impairment | 14119955 |  | 14119955 |  |
| &nbsp;&nbsp;&nbsp;Foreign currency transaction loss/(gain) | 115476 | (137337) | (119103) | (176575) |
| Total operating expenses | 19347082 | 3475775 | 29024210 | 9483582 |
| Operating loss | (19305832) | (3475775) | (28954769) | (9483582) |
| Other non-operating income / (loss) | (5857606) | (9621158) | 26600259 | (16121402) |
| Current income tax recovery |  | - | 5 | - |
| Net Loss | **(25163438)** | **(13096933)** | **(2354505)** | **(25604984)** |

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**Revenue**

The Company derives revenue from the sale of software and software as a service. Revenue for the three and nine months ended March 31, 2025 was $81,411 and $130,934, respectively, compared to $nil for the three and nine months ended March 31, 2024. The increase of revenue was due to the Company having consolidated the newly acquired subsidiary, Grafiti Limited. Grafiti Limited generates revenue from providing scientific software products and services. All the revenue post to the acquisition date has been consolidated by the Company.

**Cost of Revenue and Gross Profits**

Cost of revenues for the three and nine months ended March 31, 2025 were $40,161 and $61,493, respectively, compared to $nil for the three and nine months ended March 31, 2024. The gross profit margin for the three and nine months ended March 31, 2025 were 51% and 53%, respectively.

**Research and Development Expenses**

Research and development expenses were $959,672 for the three months ended March 31, 2025, compared to $1,805,747 for the three months ended March 31, 2024. The decrease of $846,075 was primarily due to the following:

● salaries decreased by approximately $798,000;

● rent expense decreased by approximately $167,000; and

● lab supplies and materials decreased by approximately $120,000; partially offset by engineering contract expense increased by approximately $239,000.

Research and development expenses were $2,014,226 for the nine months ended March 31, 2025, compared to $3,760,318 for the nine months ended March 31, 2024. The decrease of $1,746,092 was primarily due to the following:

● salaries decreased by approximately $1,942,000;

● lab supplies and materials decreased by approximately $540,000;

● rent decreased by approximately $294,000;

● share-based compensation expense decreased by approximately $206,000;

● other expenses decreased by approximately $102,000;

● Canadian Scientific Research & Development tax credits received decreased by approximately $1,099,000; and

● engineering contract expense increased by approximately $239,000.

The Company anticipates research and development expenses will increase as the Company entered into a Technical Design Agreement for the development of the Company's HyperSport Race electric motorcycle.

**General and Administrative Expenses**

For the three months ended March 31, 2025, general and administrative expenses were $3,702,113, compared to $1,531,065 for the three months ended March 31, 2024. The increase of $2,171,048 was primarily due to the following:

● professional fee increased by approximately $809,000;

● salaries increased by approximately $672,000;

● insurance increased by approximately $178,000;

● audit and consulting fee increased by approximately $177,000;

● investor relation expense decreased by approximately $123,000;

● rent increased by approximately $113,000; and

● other expenses increased by approximately $99,000.

For the nine months ended March 31, 2025, general and administrative expenses were $6,674,473, compared to $4,895,715 for the nine months ended March 31, 2024. The increase of $1,778,758 was primarily due to the following:

● professional fee increased by approximately $960,000;

● investor relation expense increased by approximately $742,000;

● salaries increased by approximately $655,000;

● rent expense increased by approximately $213,000;

● insurance expense increased by approximately $199,000; partially offset by

● legal fee decreased by approximately $487,000;

● audit and consulting fee decreased by approximately $323,000;

● share-based compensation expense decreased by approximately $122,000; and

● other expense decreased by approximately $58,000;

The Company anticipates that general and administrative expenses will be consistent with previous quarters to year end.

**Sales and Marketing Expenses**

Sales and marketing expenses were $185,776 for the three months ended March 31, 2025, compared to $201,509 for the three months ended March 31, 2024. Sales and marketing expenses were $538,321 for the nine months ended March 31, 2025, compared to $774,481 for the nine months ended March 31, 2024. The decrease in sales and marketing expenses was primarily attributable to the decreased sales and marketing activities.

The Company anticipates sales and marketing expenses will re increase in the coming months as we launch our HyperSport Race marketing campaigns.

**Transaction Costs**

Transaction costs were $203,000 and $5,620,436 for the three and nine months ended March 31, 2025, respectively, compared to $nil for the three and nine months ended March 31, 2024. Transaction costs were legal, professional and consulting fees related to the business combination transaction completed in November 2024.

**Impairment**

For the three months and nine months ended March 31, 2025, the Company recorded a non-recurring impairment of goodwill in the amount of $14,045,955 and an impairment of intangible assets in the amount of $74,000, reducing the carrying value of goodwill and intangible assets to $nil.

**Oher Non-Operating Income/(Loss)**

For the three months ended March 31, 2025, other non-operating loss were $5,857,606, compared to $9,621,158 for the three months ended March 31, 2024. The decrease of other non-operating loss of $3,763,552 was primarily due to the following:

● loss from change in fair value of financial liabilities decreased by $8,201,000;

● loss on extinguishment of debt decreased by approximately $720,000;

● finance expense for warrants issuance increased by approximately $4,739,000;

● interest expense increased by approximately $418,000.

For the nine months ended March 31, 2025, other non-operating income were $26,600,259, compared to other non-operating loss of $16,121,402 for the nine months ended March 31, 2024. The increase of other non-operating income of $42,721,661 was primarily due to the following:

● income from change in fair value of financial liabilities increased by approximately $47,273,000;

● loss on extinguishment of debt decreased by approximately $720,000;

● finance expense for warrants issuance increased by approximately $4,739,000; and

● interest expense increased by approximately $532,000.

**Net Loss**

During the three months ended March 31, 2025, the Company incurred a net loss of $25,163,438, compared to a net loss of $13,096,933 for the three months ended March 31, 2024. The increase in net loss is mainly due to the Company recognized impairment of goodwill and intangible assets of $14,119,955 for the three months ended March 31, 2025. The increase in net loss was partially offset by the $nil fair value loss recognized in the three months ended March 31, 2025, compared to a fair value loss of $8,201,000 for the three months ended March 31, 2024.

During the nine months ended March 31, 2025, the Company incurred a net loss of $2,354,505, compared to a net loss of $25,604,984 for the nine months ended March 31, 2024. The decrease in net loss is mainly due to the income from change in fair value of financial liabilities of $34,333,573 for the nine months ended March 31, 2025, compared to the loss from change in fair value of financial liabilities of $12,939,830 for the nine months ended March 31, 2024. Upon the completion of Business Combination, the convertible notes were mandatorily converted into 16,496,750 Damon Motor's common shares. Upon conversion, the carrying value of the convertible debt approximates fair value of the shares issued.

**Comparison of Annual Results**

The Company's results of operations for the year ended June 30, 2024, 2023 and 2022 are presented below:

---

| | | |
|:---|:---|:---|
|  | **Years ended June 30,** | **Years ended June 30,** |
|  | **%<br> Change<br> 2024-2023** | **% <br> Change<br> 2023-2022** |
|  | % | % |
| **Expenses** |  |  |
| &nbsp;&nbsp;&nbsp;Research and development, net) | (74)% | (4)% |
| &nbsp;&nbsp;&nbsp;General and administrative) | (37)% | 42% |
| &nbsp;&nbsp;&nbsp;Sales and marketing) | (64)% | (38)% |
| &nbsp;&nbsp;&nbsp;Depreciation) | (18)% | 49% |
| &nbsp;&nbsp;&nbsp;Transaction costs | 73% | n.a |
| &nbsp;&nbsp;&nbsp;Asset impairment) | (100)% | n.a. |
| &nbsp;&nbsp;&nbsp;Gain from release of lease obligation) | (99)% | n.a. |
| &nbsp;&nbsp;&nbsp;Foreign exchange (gain)/loss | (155)% | 277% |
| Loss from Operations) | (64)% | 16% |
| **Other expenses** |  |  |
| &nbsp;&nbsp;&nbsp;Changes in fair value of financial liabilities | 375%) | (57)% |
| &nbsp;&nbsp;&nbsp;Loss on debt settlement | n.a |  |
| &nbsp;&nbsp;&nbsp;Finance expense | 200% | 1312% |
|  | 352% | (45)% |
| Net loss before income tax) | (8)% | 1% |
| Income tax expense | - | - |
| **Net loss** | (8)% | 1% |
| **Loss per share:** |  |  |
| Basic and diluted – common shares | (11)% | (3)% |
| **Weighted average number of shares outstanding:** |  |  |
| Basic and diluted – common shares | 3% | 3% |

---

 ****

***Research and Development, Net***

---

| | |
|:---|:---|
|  | **Year ended June 30,** |
|  | **2024** |
|  | $ |
| Salaries and wages |  |
| Lab supplies and materials |  |
| Contractors and consultants |  |
| Stock-based compensation |  |
| Rent and insurance |  |
| Travel, meals and entertainment |  |
| Subscriptions and dues |  |
| General expenses and others |  |
| Canadian Scientific Research & Development tax credits <sup>(1)</sup> |  |
| Industrial Research Assistance Program grant funding |  |

---

 

<sup>(1)</sup> The Canadian Scientific Research & Development ("SR&ED") tax credits are accounted as a reduction to the research and development costs above and is made up of 2022 SR&ED tax credit refund of $1,036,952 (Note 7 – CAD$1,403,514) and 2023 SR&ED tax credit refund of $1,065,756 (CAD$1,461,087), both of which were received in the three months period ended December 31, 2023

<u>Fiscal 2024 compared to Fiscal 2023</u>

For the year ended June 30, 2024, the research and development, net amounted to $4.6 mil compared to $17.5 mil for the year ended June 30, 2023. The decrease was primarily due to reduced R&D activities as Damon Motors managed its cashflow and spend on key operational items as analyzed below and recognition of Canadian Scientific Research & Development tax credit ("SR&ED ") of $2.1 mil received in year ended June 30, 2024 compared to $nil received in year ended June 30, 2023.

For the year ended June 30, 2024, salaries and wages decreased from $8.4 mil for the year ended June 30, 2023, to $5.1 mil mainly due to decrease in headcount, from 39 as of June 30, 2023, to 18 by June 30, 2024. Similarly, the lab supplies and materials decreased from $5.1 mil for the year ended June 30, 2023 to just $0.5 mil for the year ended June 30, 2024 as development activities in 2024 were reduced significantly as the development of motorcycle models were mostly completed largely in 2022 and 2023. The fees paid to outside contractors and consultants decreased from $1.1 mil for the year ended June 30, 2023 compared $0.05 mil for the year ended June 30, 2024 with development and testing work being carried out by Damon Motors employees instead of out-sourcing to third party. Stock-based compensation decreased from $0.8 mil for the year ended June 30, 2023, to $0.1 mil in line with decrease in headcount, expiry of unexercised stock options for terminated employees and no new stock options granted for the year ended June 30, 2024 compared to the year ended June 30, 2023. The decrease in rent and insurance from $1.4 mil for the year ended June 30, 2023 to $0.7 mil for the year ended June 30, 2024 is mainly due to the surrender of Surrey manufacturing facility lease effective June 30, 2023. Overall decrease in travel, meals and entertainment, subscriptions and dues, and general and other expenses were in line with Damon Motors's managing costs.

<u>Fiscal 2023 compared to Fiscal 2022</u>

For the year ended June 30, 2023, the research and development, net amounted to $17.5 mil, compared to $18.2 mil for the year ended June 30, 2022. The decrease was due to scaling down of R&D activities in the second half of 2023 due to tight cash position as explained below.

For the year ended June 30, 2023, salaries and wages increased from $7.4 mil for the year ended June 30, 2022 to $8.4 mil for the year ended June 30, 2023 mainly due to higher headcount in the first half of the Fiscal 2023 and severance payment made to terminated employees. With development of HyperDrive and HyperSport, the research and development team headcount continued to increase from 78 as of June 30, 2022, peaking at 85 team members in August 2022 but dwindling down to 39 by June 30, 2023 as Damon Motors under-go two rounds of headcount reduction in February and April 2023. Stock-based compensation decreased from $1.3 mil for the year ended June 30, 2023 to $0.8 mil for the year ended June 30, 2022 as stock options granted to the R&D team during the year were more than off-set by forfeiture or cancellation of unexercised stock options for terminated employees. The fees paid to outside contractors and consultants of $3.7mil for the year ended June 30, 2022 has decreased to $1.1 mil for the year ended June 30, 2023 as some of the contractors converted to full-time employees of Damon Motors, and due to slowing down of non-critical research and development activities as funds were tight. The decrease was also reflected in overall decrease in travel, meals and entertainment, subscriptions and dues and in general and other expenses in line with overall headcount decrease. The decrease was, however, partially off-set by increase in rent and insurance due to commencement of lease of Surrey manufacturing facility and 101 Glacier on September 29, 2022 and October 1, 2022 respectively.

Also included in research and development, net are SR&ED tax credits and government grant funding totaling $nil and $0.1 mil respectively the year ended June 30, 2023 and $0.6 mil and $0.1 mil respectively for the year ended June 30, 2022. The decrease in SR&ED tax credits for the year ended June 30, 2023 was because the tax credit claimed during the year was not finalized as of June 30, 2023.

***General and Administrative***

---

| | |
|:---|:---|
|  | **Year ended June 30,** |
|  | **2022** |
|  | $ |
| Salaries and wages: | 1422378 |
| Contractors and consultants: | 1343542 |
| Professional fees: | 914818 |
| Stock-based compensation: | 829288 |
| Rent and insurance: | 144239 |
| Travel, meals and entertainment: | 52270 |
| Subscriptions and dues: | 31788 |
| General expenses and others: | 39927 |
| Rental income:<sup>(1)</sup> | - |
|  | **4778250** |

---

 

<sup>(1)</sup> Rental income for the year ended June 30, 2024 is net of bad debt of $43,091 (2023 and 2022 – nil)

<u>Fiscal 2024 compared to Fiscal 2023</u>

General and administrative decreased to $4.3 mil for the year ended June 30, 2024 compared to $6.8 mil for the year ended June 30, 2023, mainly due to management controlling its operating costs due to challenges with fund raising.

Salaries and wages for the year ended June 30, 2024, of $1.6 mil is lower compared to $2.2 mil for the year ended June 30, 2023, principally due to decrease in headcount from 10 as of June 30, 2023, to 5 members as of June 30, 2024 due to terminations on March 18, 2024. Contractors and consultants fees paid to external parties increased from $1.1 mil for the year ended June 30, 2023 to $1.3 mil for the year ended June 30, 2024 as Damon Motors incurred more consultancy and advisory fees due to interim financial statements reviews and year-end financial statements audit for the public filing requirements in fiscal year 2024. However, professional fees decreased from $1.1 mil for the year ended June 30, 2023, to $0.3 mil for the year ended June 30, 2024, due to decrease in professional fees related to financing and decrease in intellectual property filing and patent registration due to tight cashflow. The decrease in professional fees related to financing is due to Damon Motors raising funds in fiscal year 2024 through a broker compared to largely non-brokered financing in fiscal year 2023. Stock-based compensation decreased from $0.9 mil for the year ended June 30, 2023, compared to $0.06 mil for the year ended June 30, 2024 in line with decrease in headcount, expiry of unexercised stock options for terminated employees, and no new stock options granted for the year ended June 30, 2024 compared to the year ended June 30, 2023.

<u>Fiscal 2023 compared to Fiscal 2022</u>

For the year ended June 30, 2023, general and administrative expenses increased from $4.8 mil for the year ended June 30, 2022, to $6.8 mil. The increase resulted from the expansion of Damon Motors's head office in anticipation of an expected increase in business and professional fees incurred for intellectual property filing and patent registration in fiscal year 2023.

Salaries and wages increased from $1.4 mil for the year ended June 30, 2022, to $2.2 mil for year ended June 30, 2023 mainly due to increase in salary and wages in line with increase headcount and severance payment for terminated employees the in second half of Fiscal 2023. The headcount increased from 15 as of June 30, 2022, peaking at 20 headcounts in September 2022 to support business expansion, before the two rounds of headcount reduction in February and April 2023, reducing the headcount significantly back to 10 members as of June 30, 2023 due to challenges with fund raising. On the other hand, fees paid to contractors and consultants reduced marginally from $1.3 mil for year ended June 30, 2022 to $1.1 mil for the year ended June 30, 2023 as Damon Motors cut down its spending on third party contractors and consultants due to tight cash position but partially off-set by increase in accounting and consulting fees due to more frequent interim financial statements reviews. Professional fees increased from $0.9 mil for the year ended June 30, 2022, to $1.1 mil for year ended June 30, 2023 due to higher legal and professional fees related to intellectual property filing and patent registration in fiscal year 2023 and on-going fund raising. Stock-based compensation increased marginally for the year ended June 30, 2023 totaling $0.9 mil compared to $0.8 mil for the year ended June 30, 2022 as stock options granted were partially offset by forfeiture or cancellation of unexercised stock options for terminated employees.

The increase in rent and insurance was due commencement of leases as mentioned above. The overall increase in travel, meals and entertainment, and in general and other expenses for the year ended June 30, 2023 was mainly due to more travelling due to increase fund raising, corporate transaction activities and expansion of business activities. Increase in subscriptions and dues was mainly due to implementation and subscription of Damon Motors cloud-based financial application and cloud-based content management application in Fiscal 2023.

***Sales and Marketing***

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended June 30,** | **Year ended June 30,** | **Year ended June 30,** |
|  | **2024** | **2023** | **2022** |
|  | $ | $ | $ |
| Marketing and promotion: | 390305 | 1273680 | 2587198 |
| Salaries and wages: | 456216 | 793209 | 1270935 |
| Stock-based compensation: | 15471 | 128996 | 190301 |
| Contractors and consultants: | 8500 | 98889 | 11861 |
| Rent and insurance: | 111739 | 435517 | 136977 |
| General expenses and others: | 3906 | 17501 | 219893 |
|  | **986137** | **2747792** | **4417165** |

---

<u>Fiscal 2024 compared to Fiscal 2023</u>

For the year ended June 30, 2024, sales and marketing decreased from $2.7 mil for the year ended June 30, 2023, to $1.0 mil. The decrease was primarily due to Damon Motors reducing the marketing team activity due to a delay in production and Damon Motors continuing to manage its cash flows as explained above.

Marketing and promotion expenses were reduced from $1.3 mil for the year ended June 30, 2023 to $0.4 mil for the year ended June 30, 2024 as Damon Motors limited the spend on promotion activities, sponsorship, advertisement, and public relation consultancy costs due to the limited cashflow. Salaries and wages also reduced from $0.8 mil for the year ended June 30, 2023 to $0.5 mil for the year ended June 30, 2024 as headcount was reduced from 5 members as of June 30, 2023 to 3 members as of June 30, 2024.

<u>Fiscal 2023 compared to Fiscal 2022</u>

For the year ended June 30, 2023, selling and marketing expenses decreased from $4.4 mil for the year ended June 30, 2022, to $2.7 mil. The decrease was primarily due to Damon Motors reducing headcount in its marketing team due to a delay in production and scaling down marketing activities due to a tight cash position.

In view of the above, marketing and promotion expenses reduced from $2.6 mil for the year ended June 30, 2022 compared to $1.3 mil for the year ended June 30, 2023. Salaries and wages also reduced from $1.3 mil for the year ended June 30, 2022 to $0.8 mil due to headcount reduction from 8 members as of June 30, 2022 to just 5 members as of June 30, 2023 as production was delayed and due to challenging funding situation. The decrease in travel, meals and entertainment, and general and other expense were due to drastic scaling down of activities in view of tight cash position. On the other hand, increase in rent and insurance allocated was mainly due to commencement of new leases as mentioned previously.

***Depreciation***

<u>Fiscal 2024 compared to Fiscal 2023</u>

For the year ended June 30, 2024, depreciation decreased from $0.4 mil for the year ended June 30, 2023, to $0.3 mil as there was no asset addition for the year ended June 30, 2024 and some assets were impaired in Fiscal 2023.

<u>Fiscal 2023 compared to Fiscal 2022</u>

The depreciation for the year ended June 30, 2023 increase to of $0.4 mil from $0.2 mil for the year ended June 30, 2022, due office expansion to accommodate new headcounts.

***Transaction costs***

For the year ended June 30, 2024, transaction costs increased from $0.9 mil for the year ended June 30, 2023, to $1.6 mil due to higher legal, professional and consulting fees related business combination with XTI Aerospace and public listing in Fiscal 2024 compared to costs associated with the deSPAC transaction in Fiscal 2023.

There were no transaction costs for the year ended June 30, 2022.

***Changes in Fair Value of Financial Liabilities***

Changes in the fair value of financial liabilities includes the following amounts for the year ended June 30, 2024, 2023 and 2022:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended June 30,** | **Year ended June 30,** | **Year ended June 30,** |
|  | **2024** | **2023** | **2022** |
|  | $ | $ | $ |
| Changes in Fair Value of: |  |  |  |
| &nbsp;&nbsp;&nbsp;SAFEs: | 592543 | 740030 | 8935049 |
| &nbsp;&nbsp;&nbsp;Convertible notes: | 13011887 | 2874000 |  |
| &nbsp;&nbsp;&nbsp;Warrants: | 4820562 | 267950 | - |
|  | **18424992** | **3881980** | **8935049** |

---

<u>Fiscal 2024 compared to Fiscal 2023</u>

Changes in the fair value of financial liabilities of $18.4 mil for the year ended June 30, 2024, compared to $3.9 mil for the year ended June 30, 2023, related to changes in fair value of SAFEs issued in August and September 2022, convertible promissory notes issued from October 2022 onwards and common share purchase warrants issued as part of the convertible notes from June 2023 onwards to finance Damon Motors's operation. The increase in fair value for the year ended June 30, 2024 is attributed mainly to more financial instruments issued to finance Damon Motors's operation (see MD&A section entitled "Liquidity and Capital Resources") and the increase in the market price of Damon Motors equity as compared to the previous valuations.

<u>Fiscal 2023 compared to Fiscal 2022</u>

The decrease in the changes in fair value of SAFEs from $8.9 mil for the year ended June 30, 2022 to of $0.7 mil for the year ended June 30, 2023 as the two tranches of SAFEs, Tranche 5 and Tranche 6, were converted to preferred shares on December 31, 2021. The changes in fair value of SAFEs of $0.7 mil for the year ended June 30, 2023 relates to Tranche 7 which will be convertible to common shares on maturity. The change in fair value of convertible promissory notes and common share purchase warrant obligations of $2.9 mil and $0.3 mil respectively for the year ended June 30, 2023 relates to convertible notes and share purchase warrants issued to noteholders in Fiscal 2023 compared to nil in Fiscal 2022 as Damon Motors was funded mainly from issuance of SAFEs in Fiscal 2022.

***Finance Expense***

Finance expense includes the following amount for the year ended June 30, 2024, 2023 and 2022:

---

| | |
|:---|:---|
|  | **Year ended June 30,** |
|  | **2022** |
|  | $ |
| Financing fees and other: | 44817 |
| Interest on debt: | 13794 |
| Interest on convertible notes: |  |
| Interest on finance lease: | 12435 |
| Accretion: | 6296 |
| Interest Income: | - |
|  | **77342** |

---

<u>Fiscal 2024 compared to Fiscal 2023</u>

Finance expense increased from $1.1 mil for the year ended June 30, 2023, to $3.3 mil primarily by Damon Motors relying more on debt to finance its operations. For the year ended June 30, 2024, Damon Motors incurred financing fees of $0.8 mil which increased from financing fees of $0.4 mil for the year ended June 30, 2023. Interest expense on convertible notes increased from $0.5 mil for the year ended June 30, 2023 compared to $2.3 mil for the year ended June 30, 2024 as all notes were largely issued in the second quarter of Fiscal 2023 and Fiscal 2024 to finance Damon Motors's operation.

<u>Fiscal 2023 compared to Fiscal 2022</u>

For the year ended June 30, 2023, finance expenses increased from $0.1 mil for the year ended June 30, 2022, to $1.1 mil. The increase was driven primarily by financing fees, interest expense for SR&ED facility loan, promissory notes and convertible notes all drawn or issued in the second quarter of Fiscal 2023 to finance Damon Motors's operation.

In general, Damon Motors realized lower finance expense for the year ended June 30, 2022, as Damon Motors was largely funded by the issuance of SAFEs which are convertible to common shares on maturity, with no interest charge.

***Net Loss***

<u>Fiscal 2024 compared to Fiscal 2023</u>

For the year ended June 30, 2024, the net loss decreased from $37.0 mil for the year ended June 30, 2023 to $34.0 mil. The decrease in net loss was largely due to substantial drop in operating cost of $15.1 mil, recognition of Canadian Scientific Research & Development tax credit ("SR&ED") of $2.1 mil received in year ended June 30, 2024 as explained above, and absence of asset and right-of-use asset impairment of $9.5 mil recognized in the year ended June 30, 2023, partially offset by increase in transaction cost of $0.7 mil, gain from release of lease obligation of $6.1 mil, changes in fair value of financial liabilities of $14.5 mil, loss from debt settlement of $0.8 mil and higher finance expenses $2.2 mil as Damon Motors relies more on convertible notes issued to finance its operation.

<u>Fiscal 2023 compared to Fiscal 2022</u>

For the year ended June 30, 2023, the net loss increased marginally from $36.7 mil for the year ended June 30, 2022, to $37.0 mil. The increase in net loss was due to higher transaction costs $0.9 mil, asset impairment of $9.5 mil, higher finance expenses of $1.0 mil, partially off-set by gain from the release of lease obligation of $6.2 mil and changes in fair value of financial liabilities of $5.1 mil.

**Liability and Capital Reserves**

As of March 31, 2025, the Company had cash of $7,555,820, and working capital deficiency of approximately $21.1 million. The Company's accumulated deficit and expected future losses cast substantial doubt upon its ability to continue as a going concern. Furthermore, the Company had negative cash flows from operating activities of approximately $14.7 million for the nine months ended March 31, 2025. These operating losses and negative cash flows were mainly the result of on-going operating costs, transaction costs incurred due to the business combination and the public listing exercise and financing cost to sustain its operation. Based on the foregoing and its growth strategy, the Company expects to continue to make significant expenditures to expand its business and develop operations in the future. As a result, the Company may continue to incur operating losses and have negative cash flows in the short term, as it continues to execute on its growth strategy and develop operations to produce the motorcycles to meet delivery of the motorcycles in our order book. As such, the substantial doubt of the Company's ability to continue as a going concern has not been alleviated by management's plans.

The Company's primary sources of liquidity used in the funding of its operations and the execution of its growth comes from on-going fund raised in the form of issuance of share capital. The Company cannot provide assurance that the Company will secure financing in a timely manner.

**Summary of Cash Flows**

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended** | **Nine Months Ended** |
|  | **March 31,**<br>**2025** | **March 31,**<br>**2024** |
| Cash Flows: |  |  |
| Cash flows used in operating activities: | $(14676985) | $(10746591) |
| Cash flows provided by investing activities: | 77270 |  |
| Cash flows provided by financing activities: | 21774284 | 8701545 |
| Increase / decrease in cash: | $7174569 | $(2045046) |

---

**Cash Flows from Operating Activities**

During the nine months ended March 31, 2025, cash used in operating activities was $14,676,985, compared with $10,746,591 for the nine months ended March 31, 2024. Cash used in operating activities increased by $3,930,394 principally as a result of an increase of operating expenses by approximately $19,541,000, partially offset by the non-cash impairment loss of approximately $14,130,000 and other non-cash items and changes in working capital of approximately $1,481,000.

**Cash Flows from Investing Activities**

During the nine months ended March 31, 2025, cash provided by investing activities were $77,270, representing cash acquired through the Business Combination. During the nine months ended March 31, 2024, $nil cash provided by investing activities.

**Cash Flows from Financing Activities**

During the nine months ended March 31, 2025, cash provided by financing activities were $21,774,284 compared with $8,701,545 for the nine months ended March 31, 2024. The increase of $13,072,739 was primarily due to the following:

● the Company received cash of approximately $14,767,000 from the recent financing completed in March 2025;

● proceeds from pre-paid purchase increased by approximately $4,400,000;

● proceeds from Streeterville notes increased by approximately $3,150,000;

● proceeds from promissory notes increased by approximately $929,000;

● proceeds from senior secured promissory notes increased by approximately $596,000; partially offset by

● proceeds from convertible notes decreased by approximately $8,470,000;

● payments of debt increased by approximately $2,240,000; and

● proceeds from stock options exercise decreased by approximately $59,000.

The following table provides a summary of the Company's operating, investing, and financing cash flows for the year ended June 30, 2024, 2023 and 2022:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended June 30,** | **Year ended June 30,** | **Year ended June 30,** |
|  | **2024** | **2023** | **2022** |
|  | $ | $ | $ |
| Cash used in operating activities:) |  |  |  |
| Cash used in investing activities:) |  |  |  |
| Cash provided by financing activities: |  |  |  |
| Net change in cash during the year:) |  |  |  |
| Cash, beginning of year: |  |  |  |
| **Cash and restricted cash, end of year:** |  |  |  |

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***Cash Flows Used in Operating Activities***

For the year ended June 30, 2024, cash flows used in operating activities was $12.9 mil and was composed of Damon Motors's net loss of $34.0 mil driven by the factors discussed partially offset by net non-cash items of $21.7mil and by net changes in non-cash working capital of $0.6 mil. Non-cash items of $21.7 mil were mainly composed of $18.4 mil loss related to the change in fair value of financial liabilities, $1.7 mil accrued unpaid interest on debt, $0.8 mil for loss on debt settlement, $0.1 mil for stock-based compensation expense, $0.8 mil for depreciation and amortization.

For the year ended June 30, 2023, cash flows used in operating activities was $21.1 mil and was composed of Damon Motors's net loss of $37.0 mil driven by the factors discussed above, partially offset by net non-cash items of $11.6 mil and by net changes in non-cash working capital of $4.3mil. Non-cash items of $11.6mil were mainly composed of $1.5 mil for stock-based compensation expense, $1.1 mil for depreciation and amortization, $0.8 mil for accrued unpaid interest on operating lease, $3.9 mil loss related to the change in fair value of financial liabilities, $9.4 mil related to asset impairment partially off-set by $6.2 mil in gain from lease obligation released. The increase in non-cash working capital was primarily driven by increases in trade payables.

For the year ended June 30, 2022, cash flows used in operating activities was $24.4 mil and was composed of Damon Motors's net loss of $36.7 mil driven by the factors discussed above, partially offset by net non-cash items of $11.8 mil and net changes in non-cash working capital of $0.5 mil. Non-cash items of $11.8 mil were mainly composed of $2.3 mil for stock-based compensation expense, $0.6 mil for depreciation and amortization and $8.9 mil related to the change in fair value of SAFEs. The net changes in non-cash working capital were primarily driven by increases in trade payables and accrued liabilities, an increase in customer deposits partially offset by an increase in prepaid and deposits.

***Cash Flows Used in Investing Activities***

Cash flows used in investing activities primarily relates to capital expenditures for leasehold improvements, equipment and office furniture as Damon Motors continues to expand and invest in its business infrastructure and scales its manufacturing operations.

There is no cash flow used in investing activities for the year ended June 30, 2024.

For the year ended June 30, 2023, cash flows used in investing activities primarily relates to tenant improvements made to the Surrey manufacturing facility and on lease commencement, capitalized as part of the right-of-use asset.

For the year ended June 30, 2022, cash flows used in investing activities relates to tenant improvement on the Surrey manufacturing facility and leasehold improvement and equipment for new office space in both Vancouver, British Columbia, Canada and San Rafael, California, the United States to accommodate business expansion.

***Cash Flows from Financing Activities***

Cash flows from financing activities were $11.2 mil for the year ended June 30, 2024 and was primarily due to proceeds from issuance of convertible notes of $11.5 mil, proceeds from issuance of senior secured promissory note of $0.55 mil marginally offset by partial repayment of SR&ED loan $0.9 mil.

Cash flows from financing activities were $13.8 mil for the year ended June 30, 2023 and was primarily due to proceeds from issuance of convertible notes of $11.2 mil, SAFEs of $2.0 mil, drawdown on SR&ED facility of $1.1 mil and proceeds from promissory note of $0.7 mil, partially off-set by cash settlement for release of lease obligation of $1.1 mil and SR&ED facility repayment of $0.2 mil.

Cash flows from financing activities were $25.3 mil for the year ended June 30, 2022 and was primarily due to proceeds from issuance of preferred shares $25.3 mil, draw down on SR&ED facility $0.6 mil, partially offset by SR&ED repayments of $0.6 mil during the year.

***Off-Balance Sheet Arrangements***

The Company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

**Recently Issued Accounting Standards**

For a discussion of recently issued accounting pronouncements, please see Note 2 to our interim unaudited condensed consolidated financial statements for the three and nine month periods ended March 31, 2025 incorporated by reference into this Offering Circular.

The following description of our business is current as of the date of this Offering Circular and may change as our Company evolves. Unless the context otherwise indicates, when used in this Offering Circular, the terms the "Company", "Damon", "we", "us", and "our" and similar terms refer to Damon Inc. and our wholly owned subsidiaries.

**BUSINESS DESCRIPTION**

**Our Group Structure**

The following organization chart indicates the intercorporate relationships of the Company and its material subsidiaries, together with the jurisdiction of formation, incorporation or continuance of each entity, following the consummation of the Business Combination.

The following organization chart indicates the intercorporate relationships of the Company and its material subsidiaries, together with the jurisdiction of formation, incorporation or continuance of each entity, following the consummation of the Business Combination.

![](image_003.jpg)

**Our Business**

**Our Motorcycle and Other Personal Mobility Products Development Business through Damon Motors**

The material business of the Company operates through Damon Motors. Damon Motors is a British Columbia based company aiming to commercialize a smart and technologically advanced motorcycle and other personal mobility products with zero emissions while maintaining performance and safety and incorporating connectivity and artificial intelligence.

Damon Inc., through its wholly-owned subsidiary, Damon Motors, is developing electric motorcycles and other personal mobility products that seek to empower the personal mobility industry through innovation, data intelligence and strategic partnerships. Damon Motors is developing technology and investing in the capabilities to lead an integrated personal mobility ecosystem from individual travels to last mile delivery. With decades of combined management and engineering experience across the team's careers, and a commitment to low carbon personal mobility solutions, Damon Motors is seeking to introduce existing enthusiasts to high-performance electric products while bringing new riders to the motorcycle community with first of its kind advances in zero emissions motorcycle performance, safety, connectivity and AI.

Founded in 2017, Damon Motors started reimagining the future of motorcycling by means of advanced safety design, electric vehicle powertrain technology and user experience. In 2019, Damon Motors took its first alpha prototype motorcycles and safety systems into the field to test the concept. In 2021, Damon Motors expanded its operations and R&D expertise to accelerate the engineering and development of its HyperDrive platform drive unit and the HyperSport motorcycle. Through core technology advancements, Damon Motors electric motorcycles are in prototype phase of product validation.

**Our SAVES Distribution Business Through Grafiti Limited**

Damon, through its wholly-owned subsidiary, Grafiti Limited, distributes in the United Kingdom and certain other European countries data analytics and visualization software products referred to as SAVES primarily for scientists and engineers. Grafiti Limited products can be downloaded to a user's desktop. These products help scientific research in the health and life sciences domain in the discovery of new drugs, in the study of the efficacy of established drugs and therapies, and in epidemic propagation research, among other applications. Engineers use our products for a multitude of applications which include, but are not limited to, conducting surface modelling analysis and curve fitting in order to design new engineering processes, studying signal attenuation and propagation in radio engineering. Potential automobile and motorcycle applications could include surface panel design for aerodynamics, aesthetic symmetry, and calculated asymmetry among others. We believe the Grafiti Limited regression analysis product could also be used for predicting vehicle sharing demand and pricing trends in various markets based on a wide range of variables.

Grafiti Limited was formed by the Parent on May 13, 2020 as a distribution arm for its SAVES products in the UK market and part of the European market.

**Our Corporate Strategy**

Management continues to pursue a corporate strategy that is focused on building and developing our business as a provider of end-to-end solutions ranging from personal mobility products to the collection of data to delivering insights from that data to our customers with a focus on safety and data intelligence and engineering services. In connection with such strategy and to facilitate our long-term growth, we continue to evaluate various strategic transactions, including acquisitions of companies with personal mobility products, technologies and intellectual property ("**IP**") that complement those goals by adding technology, differentiation, customers and/or revenue. We are primarily looking for accretive acquisitions that have business value and operational synergies, but will be opportunistic for other strategic and/or attractive transactions. We believe these complementary technologies will add value to the Company and allow us to provide a comprehensive integrated personal mobility ecosystem to our customers. In addition, we may seek to expand our capabilities around safety, security, artificial intelligence, augmented reality and virtual reality or other high growth sectors. Candidates with proven technologies and personal mobility products that complement our overall strategy may come from anywhere in the world, as long as there are strategic and financial reasons to make the acquisition. We are also exploring opportunities that will supplement our revenue growth. We are primarily looking for accretive acquisitions that have business value and operational synergies, yet also opportunistic for other strategic and/or attractive transactions that we believe may increase overall shareholder value, which may include, but not be limited to, other alternative investment opportunities, such as minority investments, joint ventures or special purpose acquisition companies. If we make any acquisitions in the future, we expect that we may pay for such acquisitions using our equity securities and/or cash and debt financings in combinations appropriate for each acquisition.

**Our Market**

**EV Growth Worldwide**

According to the International Energy Agency's April 2023 Global EV Outlook, global electric car markets are seeing rapid growth as sales exceed 10 million units in 2022. A total of 16% of all new cars sold were electric in 2022, up from around 9% in 2021 and less than 5% in 2020. Three geographic markets dominated global sales. China was the frontrunner, accounting for around 60% of global electric car sales. More than half of the electric cars on roads worldwide are now in China and the country has already exceeded its 2025 target for new energy vehicle sales. In Europe, the second largest market, electric car sales increased by over 15% in 2022, meaning that more than one in every five cars sold was electric. Electric car sales in the United States – the third largest market – increased 55% in 2022, reaching a sales share of 8%. The rest of the world accounts for about 2%.

**EV Growth in the North American and European Markets**

As reported by Silas Smith of way.com, in North America, the percentage of electric cars hit a new high in early 2022. During the first quarter of 2022, the number of EV registrations increased by 60% despite the generally slow performance of the overall market. During the initial nine months of 2022, a total of 530,577 electric cars were sold in the US. These numbers are only for BEVs. The figures do not include plug-in HEV and Hybrid Electric Vehicles. Almost 65% of these percentage of electric cars were Tesla. As early as 2026, S&P Global Mobility expects the total of new EV models available to break 200 in the US market, as the ICE new model count continues a steady decline. In late 2027/early 2028, the total model count should be at its apex — with the number of options across all propulsion system designs approaching 650. The situation is expected to be similar in Europe. S&P Global Mobility forecasts that the three propulsion system designs — EV, hybrid, and ICE — will each account for between 29% and 36% of the market by the end of this decade. After that, EV share is expected to continue to grow while hybrid plateaus and then joins ICE in a continuous, but slow, decline.

**Motorcycle Market Today**

The global motorcycle industry is a $144 billion industry, according to data from Motorcycles Data 2022 Global Industry Sales Report, and there are more than 180M motorcycles and scooters produced per year, which exceeds the number of passenger cars and light trucks produced per year on a combined basis.

Damon's strategy is to provide premium and high-technology electric motorcycle offerings for each highway-capable motorcycle segment, priced competitively with the other available options with the goal of becoming a leading motorcycle manufacturer with electric motorcycles that outperform comparable gas bikes.

The relevant electric vehicle markets for Damon includes:

● small and large scooters

● light, medium and heavy motorcycle; and

● small and large three-wheelers.

Damon's current core capabilities are in the light, medium and heavy motorcycle segments. Motorcycles Data 2022 Global Industry Sales Report reported $32.1 billion in light motorcycle sales in 2022, which skewed towards the markets in Asia and Europe, while the sales of medium and heavy motorcycles totaled $11.2 billion, growing at a CAGR of 7.2% and concentrated in North America and Europe, where customers more often choose heavier models.

The North American market accounts for the majority of the market's profits, whereas the majority of volume is accounted for in Southeast Asia, albeit with significantly lower margins than the North American market. That said, according to Motorcycles Data 2022 Global Industry Sales Report, the average priced motorcycle purchased in Southeast Asia has risen above $2,400, with the fastest growing segment now priced at $3,000. This increase in price is driven mainly by the increasing middle-class incomes across a younger population, where 1 out of every 2 people is now under the age of 40.

**Competitive Landscape**

Many of Damon's current and potential competitors have significantly greater financial, technical, manufacturing, marketing and other resources than Damon and may be able to devote greater resources to the design, development, manufacturing, distribution, promotion, sale and support of their products. Based on publicly available information, a number of Damon's competitors already have displayed prototype electric motorcycles and have announced target availability and production timelines, while others have launched pilot programs or full commercial offerings in certain markets.

Notably, Damon expects competition in its industry to intensify in the future, considering increased demand and regulatory push for alternative fuel vehicles, continuing globalization and consolidation in the worldwide motorcycle industry. Factors affecting competition include, among others, product quality and features, innovation and development time, pricing, reliability, safety, fuel and energy economy, customer service (including breadth of service network) and financing terms. Damon's ability to successfully compete in the motorcycle industry will be fundamental to its future success in existing and new markets and its market share. There can be no assurance that Damon will be able to compete successfully in the markets in which it operates. If Damon's competitors introduce new models or services that successfully compete with or surpass the quality, price, performance or availability of Damon's vehicles or services, it may be unable to satisfy existing customers or attract new customers at the prices and levels that would allow it to generate attractive rates of return on its investment. Increased competition could result in lower vehicle unit sales, price reductions and revenue shortfalls, loss of customers and loss of market share, which may materially adversely affect Damon's business, financial condition, operating results and prospects.

Damon's expects competition from two primary segments:

● first, from leading traditional ICE-focused companies including BMW, Honda, Ducati and Triumph. These companies have the ability to scale manufacturing and leverage global distribution capabilities, but do not currently offer a premium electric motorcycle in market. However, some of these companies are beginning to explore entering the electric motorcycle market, albeit typically they do so first with the lowest cost motorcycles and scooters, lower technological know-how required and reduced cannibalization of their high-margin products necessary to enter the bottom segments of the market; and

● second, electric vehicle-focused companies, including LiveWire, Zero and Energica that have product in market today. Damon's focus is to provide higher performing motorcycles with enhanced safety features relative to these current products. Unlike LiveWire, which is majority owned by Harley Davidson, Zero and Energica have motorcycles in the market today but lack the global manufacturing and distribution capabilities of the major ICE players.

While Damon expects competition to grow as the market shifts to electric and more players begin to make serious investments, Damon believes it is well- positioned with its combination of commitment, capabilities and advanced technology to lead the growing electric motorcycle market.

**Damon's Competitive Strengths**

We expect to drive continued growth and strong financial performance by leveraging our distinct competitive strengths, each of which we believe provide unique competitive advantages. These include:

<u>Highly qualified and knowledgeable management team</u>

Damon has assembled a top team of innovative electric vehicle and ADAS safety system engineers and management team members with backgrounds spanning design, development and manufacturing who have developed a wide array of electric vehicles, from buses, to cars, motorcycles, VTOL's and transport trucks across world class companies such as Apple, BMW, Daimler, Uber Elevate, and many others.

<u>Best-in-class strategic partners and suppliers</u>

Damon's world class strategic partners and suppliers, such as Continental, Fukuta, Brembo, Ohlins, Pirelli, Auteco, Indika Energy and many others, are among the leaders in their respective fields, and Damon believes that such relationships will allow Damon to successfully pursue a competitive position in the global electric motorcycle market.

<u>Head start in the market</u> 

Damon believes it has a significant competitive advantage stemming from the coordinated application of multiple new technologies. With more than $75M invested to date, Damon's products have advanced vehicle range and power at a reduced overall mass and are developed to solve fundamental problems that motorcyclists frequently experience that have long been poorly addressed. These include noise, emissions, range, safety, comfort and digital connectivity.

<u>Patents and trade secrets</u>

Damon's patent portfolio of 34 national and international parents awarded or filed and collection of trade secrets will further protect this new class of motorcycles. With more than 10 billion media impressions and 1200 original earned articles in 2022, as measured by unique visitors and reach based on BPA audited publications using databases such as Muckrack, Cision and Google Analytics, Damon believes its technological competitive advantage is well infused into its brand, which will continue to provide a market advantage, even as heritage brands look on.

<u>Direct to customer distribution</u>

Unlike its competitors, Damon is one of a few motorcycle manufacturers selling direct to consumers. Selling over the internet, shipping direct and owning and eventually operating its own Damon experience centers is perhaps the most important sales and distribution advantage the Company has over established players, allowing for high margin retention and a vital information feedback loop from its customers that goes straight into manufacturing and vehicle design, while also providing considerably higher profit margins and lower customer acquisition costs over time. The ability to sell motorcycles directly to consumers has shown to be viable in the electric car space; however, it is uncommon in motorcycles. Damon has enjoyed significant success with the direct sales model to date. Damon's expects to continue to generate an evangelistic brand and following, with a growing backlog currently extending into 2025/2026.

**Our SAVES Market**

We distribute SAVES products in the UK market and part of the European market. Grafiti Limited's strategy is to build a broader, long term customer base by increasing its sales of Grafiti Limited's product offerings which will include cloud and Macintosh compatible data analytics and statistical visualization software products. We believe this will enable the Grafiti Limited business to focus on generating more recurring revenues in the future.

**Our SAVES Customers**

Our customers include academic institutions, engineers and scientists in a variety of industries including environmental sciences, behavioral sciences, medical research, and engineering.

By understanding our customers unique needs and considering the markets we target, we provide expert guidance, demonstrations, and ongoing support to maximize the value our software brings. Over 60% of our customers are academic institutions or scientist associated with them. Our channel partners account for approximately 25% of our revenue.

During the year ended June 30, 2024 and prior to the Business Combination, Grafiti Limited had one customer that accounted for 11% of revenue of Grafiti Limited and during the year ended June 30, 2023, Grafiti Limited had one customer that accounted for 16% of revenue of Grafiti Limited. During the nine-month period ended March 31, 2025, Grafiti Limited had 3 customers that accounted for a total of 27% of revenue of the Company. See "*Risk Factors - Our SAVES business relies on a limited number of key customers, the importance of which may vary dramatically from year to year, and a loss of one or more of these key customers may adversely affect our operating results."*

**Competition Faced by Our SAVES Business**

We operate in a market characterized by intense competition from competitive products and their distributors and/or resellers, based on such factors as price, quality and depth of product lines and training, as well as service and support provided by the distributor to the customer. We believe we are well equipped to compete effectively with other distributors in all of these areas.

Our business is characterized by innovation and rapid change in the products we distribute. Originlab and Graphpad Prism are the main competitors of the products that we sell. These competitive products are characterized by the complexity of their user interfaces and the pre-supposition and in-depth understanding of statistics. Sigmaplot, on the other hand, has an interface that is as intuitive and simple to use and the statistical analyses available in Sigmaplot can be accessed through an intuitive and guided interface that makes the adoption of it by scientists and engineers less cumbersome and very time efficient. Sigmaplot is characterized by the richness of its graphs and their almost infinite customizability relative to our competitors' graphing solutions. We offer multiple pricing models and believe our products are competitively priced.

**Our Products and Services**

**Electric Motorcycles**

Damon's electric vehicles are developed with a set of proprietary design principles that elevate the brand, deliver differentiated riding experiences and bring emotion to electric propulsion. The initial product portfolio of motorcycle models will be built upon and utilize a single powertrain platform called HyperDrive™. As a patented, monocoque-constructed battery-chassis, HyperDrive houses a proprietary 150 kW 6-phase liquid cooled IPM motor-gearbox and proprietary electronics. This platform approach establishes a capital-efficient path to grow the product line to meet a wide range of future segments and price points, while also supporting a wide range of future motorcycle models and power sizes that share as much as 85 percent common parts. By using the frame of the battery as the motorcycle's chassis, HyperDrive also achieves valuable weight and cost reduction advantages. With 150 kW of power at its disposal, HyperDrive has been specifically designed to compete with the performance of market leaders in the high-performance motorcycle market, whether internal combustion or electric. Thanks to the energy modularity designed into it, HyperDrive-based motorcycles can be detuned in power, energy and thus cost to support 500 – 1500cc power equivalent classes of motorcycles in both the North American and European markets, with price points ranging from $20,000 - $80,000.

The HyperDrive platform is contrasted by the smaller, less powerful and lower cost HyperLite platform, currently in its early design phase. HyperLite will be developed using a very similar design architecture as HyperDrive, enabling the production of a range of light weight, low to medium cost motorcycles and scooters with milder levels of horsepower that are more common in overseas and developing markets. With these two platforms paired with Damon's three patented cornerstone technologies, CoPilot™, Shift™ and its AI-enabled cloud platform. Damon's long-term objective is to build a premium, high-tech, electric motorcycle company that rivals the largest incumbents in both profit and annual volume, by providing a technologically enhanced riding experience that is not currently available from any other manufacturer.

CoPilot provides a novel rider assistance and warning system integrated into the motorcycle. Shift allows the handlebars and foot pegs to mechatronically adjust on the fly, addressing issues of ergonomic comfort and allowing users to select different riding positions for changing conditions such as a lower, more aerodynamic position for highway use or a more upright position for urban use. Its AI-enabled cloud collects environmental and situational data that, paired with over-the-air software updates, drives a continual loop of collision warning improvements, with an aim to further reduce accident probability over time.

The commercial production of Damon's motorcycles is expected to commence after passing various internal and external tests and undergoing a self- certification process required for US-bound vehicle homologation. These tests include: the completion of Damon's ride quality and long-term durability testing, completion of FCC Title 47 certification for the onboard charger, completion of UN 38.3 battery testing, completion of Damon's internal battery testing, extreme temperature operation verification, brake testing per FMVSS, and an internal and external review of FMVSS compliance with Damon engineering subcontractor TUV of Germany. The following is a further description on the timing and stage of research and development:

● HyperDrive: The HyperDrive serves as a common powertrain platform for both the HyperSport and HyperFighter models. Damon leverages a combination of in-house research and development alongside subcontracting to external experts to advance this project. Currently, in the engineering & development stage, the power electronics are 90% complete, with ongoing validation and the integration of new features. Similarly, the mechanical and cooling systems are 90% complete, with continued testing, while the battery system is 70% complete, with efforts focused on the development of the cell interconnect system. This stage is expected to be completed by Q4 FY 2025. Subsequently, the project will progress to the pre-production stage, which will emphasize design validation and testing, with an anticipated completion by Q1 – Q2 FY 2026. The budget allocated for the next 12 months is $1.6 million USD.

● HyperSport: The Engineering & Development of the HyperSport is mostly complete, with vehicle mechanics 90% finalized, pending the completion of the HyperDrive platform. The pre-production stage is set to commence, with tooling release as a critical milestone, followed by validation and design confirmation, with an estimated completion by Q3 FY 2026. The Production & Commercialization Stage is ongoing in parallel, focusing on the establishment of the final assembly and test facility, along with the development of distribution and delivery infrastructure. This stage is expected to conclude between Q4 FY 2026 and Q3 FY 2027. The estimated budget for this program for the next 24 months is $24 million USD.

● HyperFighter: The HyperFighter shares its powertrain platform with the HyperSport, along with other key components such as the chassis, braking system, and dash display. Currently in the concept stage, the design and performance characteristics of the HyperFighter are being defined, leveraging these shared components, with an estimated completion date in Q3 – Q4 FY 2026. The engineering & development stage will follow with an anticipated completion in Q1 FY 2027 – Q2 FY 2028, and subsequently, the Pre-production Stage is expected to be completed by Q4 FY2027 – Q1 FY 2028. The Production & Commercialization Stage is projected to conclude by Q2 – Q3 FY 2028. The budget allocated for the next 24 months is $0.5 million USD for design and concept.

● HyperLite: The HyperLite is currently in the concept stage, where the design and performance characteristics are being meticulously defined. This model is envisioned as a smaller and less powerful variant of the HyperSport, featuring a new powertrain platform, and is targeted at the mass market. The concept stage, including simulation and 3D design programs, is expected to be completed by Q3 – Q4 FY 2026. The subsequent engineering & development stage is projected to conclude by Q1 FY 2028 – Q2 FY 2029. Following this, the pre-production stage is anticipated to be completed by Q4 FY2028 – Q1 FY 2029. The estimated budget for the next 24 months is $0.2 million USD, allocated for design and concept development.

● Additional Steps and Estimated Costs: As per the following table:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Concept Stage** | &nbsp;&nbsp;**Engineering & Development Stage** | &nbsp;&nbsp;**Pre-production Stage** | &nbsp;&nbsp;**Production & Commercialization Stage** | &nbsp;&nbsp;**Budget Next 12 Mo.** | &nbsp;&nbsp;**Months 13 to 24 Budget Est** | &nbsp;&nbsp;**Image** |
| **HyperDrive Platform Drive Unit** | &nbsp;&nbsp;Complete | &nbsp;&nbsp;● Power Electronics 90% complete with ongoing validation and new added features; Mechanical and cooling systems 90% complete with ongoing testing; Battery system 70% complete with ongoing development of the cell interconnect system<br>● Est. Completion: Q4 FY 2025  | &nbsp;&nbsp;● Design Validation & Testing<br>● Est completion: Q1 – Q2 FY 2026 | ● Refer to HyperSport & HyperFighter Program | ● 1.6M USD for Pre- Production phase |  | &nbsp;&nbsp; ![](image_004.jpg) |
| **HyperSport Race-Launch Product** | &nbsp;&nbsp;Complete | &nbsp;&nbsp;● 3D Engineering 35% complete; Electric Motor and Control Unit 50%; Mechanical systems 35% Complete<br>● Est. Completion: Q4 FY 2025  | &nbsp;&nbsp;● Tooling Release<br>● Validation & Design Confirmation<br>● Est. Completion: Q1 - FY26  | &nbsp;&nbsp;● Final Assembly & Test Facility<br>● Distribution & Delivery Infrastructure<br>● Est. completion: Q2 FY 2026  | ● 1.5M USD for completion of Pre-Production phase |  |  |
| **HyperSport- Launch Product** | &nbsp;&nbsp;Complete | &nbsp;&nbsp;&nbsp;&nbsp;● Vehicle Mechanics 90% Complete - Pending HyperDrive Completion | &nbsp;&nbsp;● Tooling Release<br>● Validation & Design Confirmation<br>● Est. Completion: Q3 - FY26 | &nbsp;&nbsp;● Final Assembly & Test Facility<br>● Distribution & Delivery Infrastructure<br>● Est. completion: Q4 FY 2026 – Q3 FY 2027 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● 24M USD Estimate to launch date | &nbsp;&nbsp;![](image_005.jpg) |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Concept Stage** | &nbsp;&nbsp;**Engineering & Development Stage** | &nbsp;&nbsp;**Pre-production Stage** | &nbsp;&nbsp;**Production & Commercialization Stage** | &nbsp;&nbsp;**Budget Next 12 Mo.** | &nbsp;&nbsp;**Months <br> 13 to 24<br> Budget Est** | &nbsp;&nbsp;**Image** |
| **HyperFighter**<br>**Future Model** <br>**Schedule Estimate** | &nbsp;&nbsp;● Design & Performance Characteristics Definition; Leverages shared components with HyperSport including powertrain, chassis, braking system, and dash display <br>● Est. Date: Q3 – Q4 FY 2026 | &nbsp;&nbsp;● Engineering Vehicle Development<br>● Est. completion: Q FY 2027 – Q2 FY 2028  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Est. completion: Q4 2027 – Q1 FY 2028 | &nbsp;&nbsp;&nbsp;● Est. completion: Q4 2027 – Q1 FY 2028 |  | &nbsp;&nbsp;&nbsp;● ~0.5M USD for design and concept | &nbsp;&nbsp;![](image_006.jpg) |
| **HyperLite**<br>**Future Model**<br>**Schedule Estimate**  | &nbsp;&nbsp;● Design & Performance Characteristics Definition; HyperLite is smaller and less powerful variant of the HyperSport, with and new HyperDrive Platform, targeted at the mass market<br>● Est. Date: Q3 – Q4 FY 2026 | &nbsp;&nbsp;&nbsp;● Est. completion: Q1 FY 2028 – Q2 FY 2029 | ● Est. completion: Q4 FY2028 – Q1 FY 2029 | &nbsp;&nbsp;&nbsp;● Est. completion: Q2 – Q3 FY 2030 |  | &nbsp;&nbsp;&nbsp;● ~0.2M USD for design and concept | &nbsp;&nbsp;![](image_007.jpg) |

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Damon is starting the product portfolio with the HyperSport, the launch product sets a premium and high technology nature of the brand, which currently is responsible for more than half of Damon's 3,153 reservations. Damon plans to launch additional models made possible by reusing the same HyperDrive powertrain platformcore vehicle chassis and powertrain system to address various market segmentation opportunities while reducing new product and platform development investments. Over time, Damon intends to launch additional, lower cost commuter motorcycles, offered with Damon's advanced features such as CoPilot, Shift, and connectivity to further expand global appeal.

Damon's strategy is to commercialize and refine costly new technology with a premium family of products in the 'Hyper' family of motorcycles for the western market first. This market allows Damon to establish the brand and command the highest margins while ramping up volume. For the large markets in India, Southeast Asia, Asia, Mexico and South America, some of the key challenges include price sensitivity, brand appeal, customer credit and financing options, import tax levies, trade tariffs and challenges relating manufacturing as a foreign entity.

Building a successful western brand is the first step to addressing the brand awareness and reputation gap in emerging markets.

To address price sensitivities, a scaled down, smaller powertrain platform called HyperLite will be introduced following the initial HyperDrive motorcycles. Using similar battery technology and a smaller multi-variant battery design as the HyperDrive platform, it will support several models that meet the needs of the 125cc to 400cc market segments in emerging markets such as India, SE Asia, Latin America and Mexico. These vehicles are planned to be final assembled, distributed and sold by partners in market.

Damon's HyperLite-based vehicles intend to compete by offering enhanced safety features, technology, or performance. Coupled with cost competitive subscription plans proven in western markets, Damon intends to capture considerable market share by offering a low friction price model with exceptional safety, noise and emissions benefits.

One way to determine the size of an emerging market is by conducting early market validation and testing through online pre-sales campaigns, similar to how Damon has built its order book to date. This will be achieved by conducting early web-based marketing to establish appetite for the HyperLite platform. This web-based marketing will be achieved with local language websites that link to sections of the main Damon website. In addition, Damon will look for strategic business-to-business opportunities, such as sales to other motorcycle manufacturers, last mile and other delivery applications that would allow Damon to establish a beachhead in new regions.

**Software and Connectivity Associated with Our Motorcycles**

As software-defined vehicles, all of Damon's cloud backend and control for Damon's vehicle electronic control unit is an internal development. This approach helps Damon to ensure high compatibility and functionality, integrating critical electric vehicle systems and vehicle functions into one vehicle-cloud-to- vehicle proprietary system. This allows Damon to be responsive to changing consumer needs, to remotely update software and prioritize feature development identified through analysis of Damon's data sets. This approach will apply to both its HyperLite and HyperDrive line of vehicles.

Damon's cloud vision is to revolutionize the transportation landscape through its connected vehicle strategy, empowering end users with unrivaled vehicle optimization and supervision capabilities, supporting increasingly better efficiency, safety, and performance.

Damon's CoPilot system interfaces with the rider via vibrating handlebars for forward collision warning, and via a proprietary 7" touchscreen display. The display includes integrated GPS, Cellular Connectivity, Bluetooth, high-speed video processing and 500 GB of onboard data storage. With its 1080P resolution, the display enables the following novel features to enhance rider awareness:

● LED forward collision warning to complement the handlebar vibration-based warning;

● LED blind spot warning;

● a digital rearview of traffic behind the motorcyclist;

● charging status via the 'Dragon' logo on the back side of the display; and

● full system control of the motorcycle's features and functions.

The Damon app allows riders to interact with the electric motorcycle, providing location-based services, charging stations and vehicle control functions via an integrated user profile. Damon's app remotely bridges the rider to the bike using built-in cellular connectivity and GPS, providing status, notifications, and alerts. In combination with the cloud system, the mobile app will enable an ecosystem of services provided to Damon riders.

**Our SAVES Products and Services**

We offer a comprehensive set of data analytics and statistical visualization software solutions for engineers and scientists. The suite of data analytics and statistical visualization tools includes SigmaPlot, SigmaStat, SYSTAT, PeakFit, TableCurve 2D, TableCurve 3D, SigmaScan and MYSTAT. In addition, over the last three years the next generation of the Sigmaplot Product called Sigmaplot NG was successfully developed. Sigmaplot NG is platform independent/Macintosh compatible and is a technological refresh of the past versions of Sigmaplot allowing it to leverage modern hardware architectures and computational capacity. In addition a cloud version of the Sigmaplot NGproduct which allows our customers to leverage the full power of the cloud and distribute our software among its users with low touch and/or no touch installation processes is anticipated to be released later this year.

**SigmaPlot** is the flagship product that goes beyond financially oriented spreadsheets and the "bells and whistles" of business graphing software by making the technical features that scientists and engineers need the highest priority. SigmaPlot provides more than 100 different 2D and 3D graph types. Researchers can choose from a full range of graphing options: technical axis scales, multiple axes, multiple intersecting 3-D graphs and more. With SigmaPlot, users create clear, compelling graphs that cannot be generated with basic spreadsheet packages.

**Systat** is a powerful statistical and graphical software package that is easy to use and highly integrated. The software includes basic and advanced statistics. The basic functions are usually the most commonly used statistics (e.g., user can do descriptive statistics, frequencies, correlations and etc.). Systat can also be used for advanced statistics (e.g., regression, ANOVA, MANOVA, factor analysis, cluster analysis, time series).

**SigmaStat** was sold as a separate product for decades and was recently integrated into SigmaPlot. SigmaStat is a user-friendly statistical software package scientists turn to when they want to be expertly guided through the analysis of their data. It is an ideal solution for anyone who needs to conduct statistical analysis but does not have the in-depth knowledge of the math behind the statistical procedures performed.

**SigmaScan Pro Scientists**, engineers or technicians face problems that are difficult to measure but easy to photograph. SigmaScan provides a complete image analysis package for studying the structure and size of the visual information — everything from image collection to data analysis. With powerful image analysis and data manipulation techniques, SigmaScan Pro transforms images into reliable statistics, understandable graphs and valuable scientific conclusions.

**TableCurve 2D** is a linear and non-linear curve fitting package for scientists. TableCurve 2D is the first and only program that completely eliminates endless trial and error by automating curve fitting.

**TableCurve 3D** performs linear and non-linear surface fitting. TableCurve 3D is the first and only program that combines a powerful surface fitter with the ability to find the ideal equation to describe three-dimensional empirical data.

**PeakFit** performs automated nonlinear peak separation and analysis. It was designed for scientists performing spectroscopy, chromatography and electrophoresis. PeakFit's state-of-the-art nonlinear curve fitting is essential for accurate peak analysis and conclusive findings.

**Our Operations**

**Sources and Availability of Raw Materials for Our Motorcycle Business**

As a vehicle designer and manufacturer, Damon designs, develops and tests functional vehicle components such as the motor-gearbox, inverter, electronic control unit, rider display interface, battery pack, cooling system and more. It has also designed and developed the bodywork and chassis system. These components are manufactured by world class suppliers such as Fukuta, Sinbon, Inventec and Wistron. Other specialized components such as brakes, suspension, ABS systems and tires are supplied by major brand names such as Brembo, Ohlins, Continental and Dunlop. All final components and subassemblies and shipped for hand assembly by Damon staff. Damon does not procure any raw materials.

**Distribution Methods for Our Motorcycle Business**

Damon is positioned to modernize the way electric motorcycles are brought to market, combining online and in-person touchpoints to yield a superior customer experience with greater cost efficiency. With a meaningful gap between the pace at which vehicle retailing has evolved over the past two decades relative to other sectors, Damon believes there is tremendous upside potential for a model that incorporates direct-to-consumer online practices with pull-based vehicle assembly. This significantly lowers on-hand inventory costs, creates a continuous customer order backlog that generates ongoing demand and eliminates the ability for end customers to negotiate on price.

Most Damon customers begin their journey online, with many utilizing a mobile device interfacing via its mobile website or through the Damon app. Damon is investing in digital development to bring those customers to a single front end to address the early stages of their journey and to continue through to purchase.

In North America and Europe, Damon intends to offer interested customers the opportunity for a test ride before making a purchase. In addition, Damon plans to open pop-up locations and brand installations to provide customers to interact with Damon products in key locations.

Beyond North America and Europe, Damon has agreed to a partnership with Auteco Mobility ("**Auteco**"), for the final assembly, distribution, and sales of Damon's HyperLite, its lower-cost global electric motorcycle platform.

Damon's agreement with Auteco is for the development of the Latin American Market, which also includes a provision for technology licensing. Damon intends to make a depopulated variant of its CoPilot technology to provide safety on lower cost vehicles. In its discussion with Auteco, they proposed installing CoPilot on all their bikes and providing the customers with the ability to unlock the safety features for an additional $10/month. The details of these and other licensing opportunities are still to be finalized, but there appears to be strong demand for Damon's safety technology. For manufacturing, Damon intends to work with Auteco on the assembly, distribution, and sales of Damon branded motorcycles into the LATAM countries where Auteco has an established network.

In addition to Auteco, Damon has received a $5 million investment from, and established a strategic partnership with, PT Ilectra Motor Group and PT Solusi Mobilitas Indonesia for final assembly and distribution in Indonesia with the ability to expand that partnership to all of Southeast Asia. Damon has entered into a relationship agreement with PT Ilectra Motor Group and PT Solusi Mobilitas Indonesia that establishes the strategic partnership and a provided for the purchase of an unsecured promissory note by PT Solusi Mobilitas Indonesia from Damon for $5,000,000. In addition, Damon agreed to invest an aggregate amount of $1,000,000 in PT Ilectra Motor Group.

**Sales and Marketing for Our SAVES Business**

Grafiti sales channels include direct sales as well as indirect sales through channel partners including resellers and distributors. Our five indirect sales partners distribute the Grafiti products in the western Europe region and also provide a wide range of pre- and post-sales services to Grafiti customers including installation and support services. There has not been any revenue concentration with any single channel distributor. The agreements with the channel distributions contain customary terms including a negotiated discount for the Manufacturer's Suggested Retail Price.

Direct sales representatives are compensated with a base salary and, in certain circumstances, may participate in incentive plans such as commissions or bonuses.

Our products are marketed through industry-focused as well as account-based marketing strategies which utilize SEO, advertising, social media, trade shows, conferences, webinars, and other media.

Grafiti products are sold as annual or perpetual licenses along with maintenance subscriptions.

**Our Intellectual Property**

Damon's intellectual property is a core asset and an important tool to drive value and differentiation in its products and services. Damon protects, uses, and defends its intellectual property in support of its business objectives to increase return on investment, enhance competitive position, and create shareholder value. Through strategic and business assessments of its intellectual property, Damon relies on a combination of patents, trade secrets, copyrights, service marks, trademarks, domains, contractual terms and enforcement mechanisms across various international jurisdictions to establish and protect intellectual property related to its current and future business and operations.

As of the date of this filing, Damon holds thirty-one (31) utility patents and owns an additional seven (7) pending utility patent applications. Seventeen (17) of those issued patents are from the United States and fourteen (14) are foreign counterparts to its U.S. patents. Damon does not view any individual patent as being material to its business. Subject to required payments of annuities or maintenance fees, U.S. utility patents have a term of 20 years from the priority application date. Accordingly, Damon's U.S. patents that have already been issued will expire between 2037 and 2043. Damon's foreign patents generally have similar expiration dates, but may vary from country to country, the duration being set according to the laws of the jurisdiction that issued the patent. Damon's trademarks, logos, domain names, and service marks are used to establish and maintain its reputation with its customers, and the goodwill associated with its business. Additionally, Damon has registered trademarks including "DAMON (word)," "HYPERSPORT (word)," "HYPERCROSS (word)," "HYPERFIGHTER (word)," and "DAMON (design)" and other pending trademark applications with U.S. and foreign trademark offices. The duration of trademark registrations varies from country to country, but it is typically for ten years with unlimited ten-year renewal terms, subject to the payment of maintenance and renewal fees and the laws of the jurisdiction in which the trademark is registered.

**License, Distribution and Administrative Service Arrangements with Grafiti LLC for Our SAVES Business**

On June 19, 2020, the Parent acquired an exclusive license to use, market, distribute, and develop the SYSTAT and SigmaPlot software suite of products (SAVES) pursuant to an Exclusive Software License and Distribution Agreement, among the Parent, Cranes Software International Ltd. and Systat Software, Inc. ("**Systat**"), as amended on June 30, 2020 and February 22, 2021 (as amended, the "**License Agreement**"). In connection with the License Agreement, the Parent received an exclusive, worldwide license to use, modify, develop, market, sublicense and distribute the SAVES software, software source, user documentation and related Systat Intellectual Property (as defined in License Agreement) (the "**License**"); and an option to acquire the assets underlying the License. In connection with the Solutions Divestiture, the Parent contributed the License, along with other assets and businesses, to Grafiti LLC, then a wholly-owned subsidiary of the Parent. As reported in the current report on Form 8-K filed by the Parent on February 23, 2024, the Parent sold 100% of the equity interest in Grafiti LLC to an entity controlled by Nadir Ali, our Chief Executive Officer and sole director.

Grafiti UK was incorporated by the Parent in May of 2020 to operate as a distributor of the SAVES products in the UK and western European region. Grafiti UK is responsible for maintaining all aspects of the relationship with the end customer. All customer interaction from solicitation, pre-sale activities, sale and invoicing, delivery and customer support is the responsibility of Grafiti UK.

On July 19, 2024, Grafiti UK entered into a Distributor Agreement with Grafiti LLC. Under the Distributor Agreement, Grafiti LLC granted Grafiti UK a non- exclusive, non-transferable right and license to market and distribute SAVES products in the UK and other agreed-upon territories. Grafiti UK will pay Grafiti LLC the then-current prices for the products, subject to a discount of up to 50% if certain revenue targets are met or other arrangements agreed upon by the parties. The deemed effective date of the Distributor Agreement is January 1, 2024, and will remain in effect for one year from the effective date, automatically renewing for successive one-year periods unless either party provides advance notice prior to the end of the current term to not extend. Either party may terminate the Agreement without cause by providing at least 90 days' prior written notice, or immediately for specified reasons, including an uncured breach or bankruptcy.

Additionally, on July 19, 2024, Grafiti UK entered into an Administrative Support Service Agreement with Grafiti LLC. Under the Administrative Support Service Agreement, Grafiti LLC agreed to provide accounting, tax and other administrative sales support services to Grafiti UK for $5,080 per month, with the amount subject to a 5% annual increase by Grafiti LLC. The Administrative Support Service Agreement is deemed to have commenced on January 1, 2024, and remains in effect for one year from the effective date, automatically renewing for successive one-year periods unless either party provides advance notice prior to the end of the current term to not extend.

**Facilities**

Damon Motors' principal executive offices are currently located at 4601 Canada Way, Suite #402, Burnaby, British Columbia, Canada, under a 3-year lease from May 2025.

**Employees**

As of the date of this filing, the Company has a total of 15 employees and contractors. Of these, 13 are dedicated to our motorcycle business, including 11 full-time employees and 2 contractors. By location, 10 team members are based in Canada, one in the U.S. and two are based in France and Germany. Additionally, two employees support the SAVES business: one focuses on sales and marketing efforts while the other handles pre- and post-sale support.

None of its employees are members of any unions.

**Regulatory Overview**

**United States**

<u>NHTSA Safety and Self-Certification Obligations</u>

As a manufacturer of electric vehicles, Damon's electric vehicles are subject to, and must comply with, numerous regulatory requirements established by National Highway Traffic Safety Administration ("**NHTSA**"), including all applicable United States Federal Motor Vehicle Safety Standards ("**Safety Standards**"). As set forth by the National Traffic and Motor Vehicle Safety Act, Damon must certify that its electric vehicles meet all applicable Safety Standards. At the time of production, Damon intends for its motorcycles to be fully compliant with all such Safety Standards without the need for any exemptions.

Damon is also required to comply with, or demonstrate exemptions from, other requirements of federal laws administered by NHTSA, including the consumer information labeling and owner's manual requirements and various reporting requirements, such as "early warning" reports regarding warranty claims and field incidents, death and injury reports, foreign recall reports and safety defects reports. In addition, Damon's products are also subject to certain laws and regulations that have been enacted or proposed, e.g., "Right to Repair," laws, that could require Damon to provide third-party access to its network and/or vehicle systems.

<u>EPA Certificate of Conformity</u>

The Clean Air Act requires that Damon obtain an Environmental Protection Agency-issued Certificate of Conformity with respect to emissions from its electric vehicles and include labeling providing consumer information such as miles per gallon of gas-equivalent ratings and maximum range on a single charge. The Certificate of Conformity is required each model year for electric vehicles sold in states covered by the Clean Air Act's standards and is also required each model year for vehicles sold in states that have sought and received a waiver from the Environmental Protection Agency to utilize California standards.

<u>Battery Safety and Testing</u>

Damon's battery packs are tested in accordance with industry safety standards, including selected tests specified in the SAE J2464 and J2929 standards as well as tests defined by other standards and regulatory bodies and Damon's own internal safety and quality tests. These tests evaluate battery function and performance as well as resilience to conditions including immersion, humidity, fire and other potential hazards. Damon is still in the process of testing the vehicle battery pack. Testing has taken place at a battery cell and submodule level with the next phase planned for battery module and full pack abuse testing.

**European Union**

<u>Europe Type Approval</u>

Damon intends to export electric vehicles to Europe. Unlike the United States, once Damon starts operating in this market, it must obtain pre-approval from regulators to import and sell its electric vehicles into the EU and countries that recognize EU certification or have regulatory regimes aligned with the EU (collectively referred to as "**Europe**"). The process for certification in Europe is known as "Type Approval" and requires Damon to demonstrate to a regulatory agency in the EU, referred to as a "Competent Authority", that its electric vehicles meet all EU safety and emission standards.

Type Approval is accomplished through witness testing of vehicles as well as inspection of a representative vehicle intended for production and sale. Once the vehicle type is approved, all vehicles manufactured based on the approved type of vehicle may be produced or imported and sold in Europe.

Any changes to an approved vehicle type, including substantial software changes, must go through updated Type Approval by the Competent Authority.

<u>EU Emissions Regulations</u>

Damon believes Europe's regulatory environment is generally conducive to the development, production and sale of electric vehicles. Through emission legislation, tax incentives and direct subsidies, EU and non-EU countries in Europe are taking a progressive stance in reducing carbon emissions in the transport sector which may lead to increasing demand for electric vehicles.

This is reflected in the EU-wide target of a 90% reduction in greenhouse gas emissions from the transport sector by 2050 (compared to 1990 levels), as part of an economy-wide carbon-neutral target. Moving forward, the European Commission has proposed legislation that would: (i) introduce a "cap and trade" carbon pricing system that would apply to the transport sector from 2026; and (ii) require increased levels of national greenhouse gas reduction commitments (which include the transport sector) pursuant to a revision of the Effort Sharing Regulation, as part of efforts to reduce EU emissions by 55% by 2030 (compared to 1990 levels).

**Environmental, Health and Safety Regulations**

Certain of Damon's operations, properties and products are subject to stringent and comprehensive international, federal, state and local laws and regulations governing matters including environmental protection, occupational health and safety, and the release or discharge of materials into the environment (including air emissions and wastewater discharges). Failure to comply with these laws and regulations may result in the assessment of administrative, civil and criminal penalties, the imposition of investigatory and remedial obligations, and the issuance of orders enjoining some or all of Damon's operations in affected areas.

Damon is also subject to permitting, registration, and other government approval requirements under environmental, health and safety laws and regulations applicable in the jurisdictions in which Damon operates. Those requirements obligate Damon to obtain permits, registrations, and other government approvals from one or more governmental agencies to conduct its operations and sell its products. The requirements vary depending on the location where Damon's regulated activities are conducted.

The following summarizes certain existing environmental, health and safety laws and regulations applicable to Damon's operations.

**United States**

<u>Hazardous Substances</u>

Damon is subject to regulations governing the proper handling, storage, transportation and disposal of products containing hazardous substances. Transportation of its battery packs (and of equipment containing them) is governed by regulations that address risks posed during different modes of transport (e.g.¸ air, rail, ground, ocean). Governing transportation regulations in the U.S., issued by the Pipeline and Hazardous Materials Safety Administration ("**PHMSA**"), are based on the United Nations ("**UN**") Recommendations and Model Regulations on the Transport of Dangerous Goods as well as related UN Manual Tests and Criteria. Damon plans to test our battery pack against the applicable UN Manual tests for its production battery packs, and the test results demonstrate Damon's compliance with the PHMSA regulations in the following phases of industrialization.

Damon currently uses transition metal oxide cells in its high-voltage battery packs. Damon battery packs include certain packaging materials that contain trace amounts of hazardous chemicals whose use, storage and disposal is regulated under U.S. federal law. As a result, Damon's battery packs are subject to federal and state environmental laws and regulations that govern the handling and disposal of waste, including, in some instances, the remanufacture, recycling and disposal of hazardous waste.

The laws governing hazardous substances and hazardous waste also may impose strict, joint and several liability for the investigation and remediation of areas where hazardous substances may have been released or disposed. In the course of ordinary operations, Damon, directly and through third parties and contractors, may handle hazardous substances within the meaning of the Comprehensive Environmental Response, Compensation, and Liability Act and similar U.S. federal and state statutes and, as a result, may be jointly and severally liable for all or part of the costs required to clean up sites at which any such hazardous substances have been released into the environment.

**European Union**

<u>Hazardous Substances</u>

Should Damon expand manufacturing into the EU, it would also be subject to regulations governing the proper handling, and disposal of products containing hazardous substances in the EU, including the EU Waste Framework Directive. In relation to Damon's batteries, disposal would be governed by the Batteries Directive, which imposes, among other obligations, certain requirements in relation to the disposal of batteries, such as that producers of batteries and producers of other products that incorporate a battery are responsible for the waste management of batteries that they place on the market, in particular the financing of collection and recycling schemes.

In December 2020, the EU proposed a new Batteries Regulation, which, if passed, would include obligations with respect to the amount of recycled content required in batteries placed on the EU market and would introduce mandatory supply chain due diligence obligations with respect to the materials used in its batteries.

**Manufacturer and Dealer Regulation in the United States**

State laws regulate the manufacture, distribution, sale, and service (including delivery) of motorcycles, and generally require vehicle manufacturers and dealers to be licensed in order to sell vehicles directly to customers in the state. Some states, however, do not permit motorcycle manufacturers to be licensed as dealers or to act in the capacity of a dealer. To sell vehicles directly to residents of these states, Damon must conduct the sale out of state over the internet or telephonically.

In addition, certain states and territories require service facilities to be available for vehicles sold in the state or territory, which may be interpreted to require service facilities to be available for vehicles sold over the internet or telephonically to residents of the state or territory. Puerto Rico, for example, is one such jurisdiction. Such laws could limit Damon's ability to sell vehicles in states where Damon either does not maintain service facilities or where Damon does not have retail partners licensed to act as dealers who maintain service facilities within these states.

Damon believes that, as a matter of interstate commerce, it may sell an electric vehicle to any consumer in any state in the United States from a Damon retail partner that is duly licensed as a dealer by a state in the United States. That customer may contact a licensed Damon retail partner through the internet, by telephone or visiting the location directly. However, states that prohibit direct sales also restrict traditional sales activities. Accordingly, in order to test drive an electric vehicle or have an in-person discussion with a Damon salesperson regarding issues such as price, financing, trade-ins, options or similar purchase-related topics, a consumer residing in a direct sales-prohibited state would be required to either contact Damon through electronic means (e.g., Internet or telephone) or by traveling out of their home state to visit a licensed Damon retail partner in another state. With respect to service, vehicle manufacturers are prohibited from providing warranty service from an established location within several states. Service for customers residing in those states may in the future be provided by a mobile unit dispatched from a licensed service location in a nearby state where warranty service is allowed or by that customer driving their Damon vehicle (or having it towed) to a state which allows Damon or a licensed Damon retail partner to have a physical service location and perform warranty service activities.

**Data Privacy and Cybersecurity Laws and Regulations**

Damon's business collects, uses, handles, stores, receives, transmits and otherwise processes different types of information about a range of individuals, including its customers, riders of its electric vehicles, website visitors, users of its mobile application, its employees and job applicants, and employees of companies it does business with (such as vendors and suppliers). As a result, Damon is and may become subject to existing and emerging federal, state, local and international laws and regulations related to the privacy, security and protection of such information.

The following is an overview of the legal and regulatory framework by jurisdiction that the Company may be subject to.

**United States**

Within the United States there are numerous data privacy and cybersecurity laws and regulations that the Company may be subject to. Example of these laws and regulations include the Federal Trade Commission ("**FTC**") Act, the Gramm-Leach-Bliley Act, the Telephone Consumer Protection Act, the CAN-SPAM Act, California Consumer Privacy Act ("**CCPA**"), the California Privacy Rights Act ("**CPRA**"), the Virginia Consumer Data Protection Act ("**VCDPA**"), the Colorado Privacy Act ("**CPA**"), the Connecticut Data Privacy Rights Act ("**CTDPA**") and the Utah Consumer Privacy Act ("**UCPA**").

In the United States, while there is not a single generally applicable federal law governing the processing of personal information, there are federal laws that apply to the processing of certain types of information, or the processing of personal information by certain types of entities, and the Federal Trade Commission and state attorneys general may bring enforcement actions against companies that engage in processing of personal information in a manner that constitutes an "unfair" or "deceptive" trade practice.

In addition, certain states have enacted laws relating to data privacy and the processing of information about residents in those states. The CCPA, which went into effect on January 1, 2020, and applies to Damon's business, imposes obligations and restrictions on businesses that handle personal information of California residents and provides new and enhanced data privacy rights to California residents, including the right to know, the right to delete and the right to opt out of the sale of personal information as well as additional protections for minors. Certain requirements in the CCPA remain uncertain due to ambiguities in the drafting of or incomplete guidance. Adding to the uncertainty, in November 2020, California voters also passed the CPRA, which amends and expands upon the CCPA, imposes additional obligations and sets forth additional privacy rights for California residents. Additional states, Virginia, Colorado, Connecticut and Utah, also recently enacted comprehensive data privacy laws. Virginia passed the VCDPA, Colorado passed the CCPA, Connecticut passed the CTDPA and Utah passed the UCPA. The CPRA and VCDPA become effective on January 1, 2023, the CPA and CTDPA become effective on July 1, 2023, and the UCPA becomes effective on December 31, 2023. There are currently draft CPRA regulations and draft CPA rules that, when passed, will supplement the CPRA and CCPA. Additionally, laws, regulations, and standards covering marketing and advertising activities conducted by telephone, email, mobile devices, and the Internet, may be applicable to Damon's business, such as the TCPA, the CAN-SPAM Act and similar state and federal consumer protection laws. Damon is also subject to certain laws and regulations that have been enacted or proposed, such as "Right to Repair" laws, that could require it to provide third-party access to its network and/or vehicle systems.

**European Union and the United Kingdom**

By expanding into Europe and the UK, Damon will also become subject to laws, regulations and standards covering data protection and marketing and advertising, including the EU General Data Protection Regulation ("**GDPR**") and the United Kingdom data protection regime, consisting primarily of the UK General Data Protection Regulation and the UK Data Protection Act (together referred to as the UK GDPR). The GDPR and UK GDPR regulate the processing of data relating to an identifiable individual (personal data) and impose stringent data protection requirements on organizations with significant penalties for noncompliance. The European Data Protection Board has also released data guidelines for connected vehicles, and the upcoming ePrivacy Regulation is in its final stages.

**Rest of World**

Regulators and legislators in jurisdictions around the world continue to propose and enact more stringent data protection and privacy laws. New laws as well as any significant changes to applicable laws, regulations, interpretations of laws or regulations, or market practices regarding privacy and data protection or regarding the manner in which Damon seeks to comply with applicable laws and regulations could require Damon to make modifications to its products, services, policies, procedures, notices and business practices. Many large geographies which may become important to Damon's future success, including Australia, Brazil, Canada, China and India, have passed or are considering comparable data privacy legislation or regulations. Until prevailing compliance practices standardize, the impact of worldwide privacy regulations on Damon's business and, consequently, its revenue, could be negatively impacted.

Damon prioritizes the trust of its customers and employees and places great emphasis on systems and product security, cybersecurity, and privacy. To earn this trust and comply with the above legal and regulatory framework, Damon is adopting and implementing a variety of technical and organizational security measures, procedures, and protocols designed to protect its systems, products and data, in accordance with the National Institute of Standards and Technology ("**NIST**") Cybersecurity Framework.

Utilizing the NIST Cybersecurity Framework, Damon has instituted a cybersecurity program designed to address the evolving cyber-threat landscape. This includes a company-wide risk management structure with capabilities to assess direct and indirect vendors and an enterprise Secure Software Development Lifecycle to ensure that Damon reduces its attack surface by remediating vulnerabilities in the development process itself. Additionally, Damon's identity and access management procedures and controls are consistent with the NIST Cybersecurity Framework, including measures to validate and authenticate the identity of its corporate users.

Damon maintains a vulnerability management program that includes periodic scans designed to identify security vulnerabilities and implement remediations for potential customer-impacting issues that are found. In addition, Damon conducts penetration tests, receives threat intelligence, follows incident response procedures, and remediates vulnerabilities according to severity and risk. Further, seeking to implement effective management, control, and protection, Damon has established a centralized, organization-wide view of information assets.

Damon's cloud security program seeks to enable secure cloud architecture deployments and extend security capabilities to the edge of Damon's network where it interacts with customers. Damon works to increase cybersecurity awareness throughout its organization through education. Damon's cloud-hosted website and mobile application software services are developed using industry-standard SecDevOps practices and are rigorously tested before deployment. Damon's product software plan to utilize a zero-trust approach that employs signed certificates, encryption keys, authentication schemes, and cryptography algorithms, and Damon has deployed these measures as appropriate as part of its efforts to secure products' communications and data transfers, vehicles and their components, including firmware over-the-air ("**FOTA**") updates. Additionally, Damon utilizes pre-condition checks, sequence and dependency execution, failure detection, and rollback and recovery when performing updates during the FOTA process.

Damon has also commenced a corporate-wide data privacy program with dedicated cross-functional resources. The objective of Damon's data privacy program is to facilitate beneficial uses of data to improve its products and services while preserving its customers' privacy expectations and complying with applicable law. Global data privacy laws and practices are continually evolving, and will continue to guide the operational design, controls, procedures, and policies for Damon's program. Damon's strategy accounts for increased risk as its business scales by addressing appropriate security and access controls for customer and employee information. A core tenet of Damon's privacy program is to implement privacy-by-design principles in both software and hardware development throughout the organization. Damon's privacy program will continue to evolve and adapt, utilizing industry practices and tailored risk management frameworks, to allow for close collaboration across the organization, particularly between Damon's information technology and legal functions.

**Legal Proceedings**

As of the date of this filing, we are not party to, nor is any of our property the subject of, any material pending legal proceedings reportable under Item 103 of Regulation S-K, except as disclosed below.

On March 7, 2025, the Company was served with a notice of civil claim (the "**Notice**"), which was filed on February 28, 2025, in the Supreme Court of British Columbia, by Damon Jay Mercredi Giraud, former director and CEO of the Company (the "**Plaintiff**"), against the Company and all of the directors of the Company. The Notice alleges, among other things, that in connection with the Plaintiff's resignation: (i) the Board agreed to certain settlement terms which included provisions related to the payment of a listing bonus contingent on the Company's successful listing on a recognized stock exchange (the "**Listing Bonus**") and backpay for unpaid wages; and (ii) after the effective date of the Plaintiff's resignation, the Company provided the Plaintiff with a written settlement agreement which fundamentally altered the terms of the previously agreed settlement terms, including the payment date for the Listing Bonus and backpay for unpaid wages; and (iii) that the Company has not discharged its obligations pursuant to the alleged settlement terms; and (iv) that the Plaintiff received a letter from major shareholders containing unfounded accusations against the Plaintiff and threatening him with legal action, and that such letter was sent by or at the direction of the Company. The Company was required to respond within 21 days after the date a copy of the Notice was served. As of the date of this the filing the Company and its directors have responded to the Notice and the Company denies the allegations of wrongdoing described in the Notice. The relief sought by the Plaintiff includes, among others, specific performance of the allegedly original verbal settlement terms, an order assigning any debts in the Plaintiff's name owed by the Company to the Company, and special costs, or, in the alternative, breach of an employment contract, and damages for wrongful dismissal.

On April 11, 2025, Andy DeFrancesco ("**DeFrancesco**") filed a notice of civil claim (the "**Claim**") against the Company in the Supreme Court of British Columbia. In the Claim, DeFrancesco alleges that, in or around October 2023, the Company's executives verbally agreed to issue $3.2 million worth of the Company's Common Shares to DeFrancesco in exchange for past and future services provided to Damon, including advising and working with the Company on financings and other operational aspects. DeFrancesco further alleges the Common Shares were to be provided as soon as possible and that he delivered an irrevocable direction regarding delivery of the Common Shares in November 2023, however the Company has refused to issue the Common Shares. The relief sought by DeFrancesco includes specific performance of the alleged verbal agreement and damages for loss of opportunities caused by the alleged breach of contract or, alternatively, unjust enrichment on a quantum meruit basis for the services allegedly provided by DeFrancesco. The Company filed a response to the Civil Claim (defense) on May 9, 2025, denying all allegations.

**MANAGEMENT**

**Directors and Executive Officers**

Set forth below is information regarding our directors and executive officers as of the date of this Offering Circular.

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| Dominique Kwong | 49 | Chief Executive Officer and Director |
| Baljinder Bhullar | 55 | Chief Financial Officer and Director |
| Karan Sodhi | 32 | Director |
| Shashi Tripathi | 47 | Chairman of the Board |
| Melanie Figueroa | 42 | Director |

---

**Biographies**

The following are brief profiles of the executive officers and directors of the Company, including a description of each individual's principal occupation within the past five years:

<u>Dominique (Dom) Kwong, Chief Executive Officer and Director</u>

Mr. Kwong was appointed to serve as the Interim CEO and Director of the Company effective as of December 4, 2024 and was subsequently appointed CEO. He served as the Chief Technology Officer and Chief Operating Officer of Damon Motors Inc. from June 2017 to January 2023. Between January 2023 and December 2024, Mr. Kwong served as a consultant in the role of as Head of Electronics for Alpinestars, a globally recognized motorcycle apparel manufacturer. In this capacity, he contributed to strategic initiatives, R&D, and operational improvements for their Tech-Air airbag systems and other electronic products. Mr. Kwong's in-depth knowledge and experience with the Company's business in electric motorcycle development and manufacturing and extensive executive leadership background led us to conclude that he should serve as a director.

<u>Baljinder (Bal) Bhullar, Chief Financial Officer and Director</u>

Bal Bhullar was appointed to serve as CFO and Director of the Company with effect upon the closing of the Business Combination. She was appointed to serve as CFO of the Company's wholly owned subsidiaries Damon Motors, Inc. and Damon Motors Corp. effective January 1, 2024. Ms. Bhullar brings over 20 years of experience in diversified business, investor relations, investment banking, financial & risk management serving as an executive and board member in both public and private companies across various sectors, including automotive, technology, manufacturing, e-commerce, transport, energy, resource and health/wellness. She previously served as CFO and Corporate Secretary of Foremost Lithium Resource and Technology (NASDAQ: FMST) from September 2023 to February 2024; CFO of ReCar (ReBuild Manufacturing) from January 2023 to March 2023; and Chief Compliance Officer, CFO and board member of ElectraMeccanica Vehicles Corp. (NASDAQ: SOLO) from October 2018 to December 2022. She has also served as President of the BC Risk Management Association and has held positions as a board member and executive of several private and public companies. Currently Ms. Bhullar is CFO and Board Member of the Company, Independent Board Member of Lexaria BioScience (NASDAQ: LEXX) and a member of the Board and CEO/Founder/board member of BKB Management Ltd. Ms. Bhullar is a Chartered Professional Accountant, Certified General Accountant, a CRM designation from Simon Fraser University and a diploma in Financial Management from British Columbia Institute of Technology. Ms. Bhullar has proven expertise with increasing market capitalization, raising capital, overseeing corporate governance, SOX, ESG, diversity and regulatory compliance, financial & strategic planning, as well as successfully completing initial public offerings, reverse mergers, business expansions, start-up operations, program development and product development which led us to the conclusion that she should serve as a director.

<u>Melanie Figueroa, Director</u>

Melanie Figueroa was appointed to serve as a member of the Board effective upon the closing of the Business Combination. Since May 2023, she has served as Co-Managing Partner of Next Move Partners LLC, an advisory firm that supports emerging growth companies navigating the complexities of the U.S. public markets in their capital raising and M&A growth initiatives. Since March 2024, Ms. Figueroa has also served as General Counsel to Grafiti LLC, a data analytics and statistical visualization software solution for engineers and scientists. From January 2020 until the closing of its business combination with XTI Aircraft Company in March 2024, Ms. Figueroa served as General Counsel to Inpixon, a Nasdaq listed global software technology company where she assisted the executive management team & board in defining and successfully executing its financing and M&A strategy, including domestic, cross-border and M&A transactions. Prior to her role as General Counsel, she was the Managing Partner of the NY office of a national law firm where she advised and assisted high growth companies in structuring & executing debt & equity financing transactions & a multitude of domestic & cross border M&A transactions, on both the buy side & sell side. Ms. Figueroa has over 15 years of experience advising executive management teams and board of directors of emerging growth companies seeking access to the U.S. public markets to raise capital and executing go public transactions through traditional IPO's and other alternative structures, including reverse mergers, spin-offs, and SPACs which led us to the conclusion that she should serve as a member of the Board.

<u>Karan Sodhi, Director</u>

Karan Sodhi was appointed to serve as a member of the Board effective upon the closing of the Business Combination. He was appointed as a director of Damon in August 2024. He is a practicing lawyer, and the managing partner at Rockford Legal & Advisory LP, a regional law firm in Delta, British Columbia. Prior to his service with Damon, Karan was an Associate Lawyer at DuMoulin Black LLP from September 2022 to September 2023; General Counsel at SOL Global Investments from September 2021 to September 2022; and Associate Legal Counsel at Pan American Silver Corp from November 2019 to September 2021. Karan brings a breadth of knowledge and experience in corporate commercial transactions, securities, capital markets and estate planning. With nearly a decade of experience, Karan has become a trusted advisor to public companies and high-net-worth individuals, managing complex transactions and regulatory challenges which led us to the conclusion that he should serve as a member of the Board.

<u>Shashi Tripathi, Chairman of the Board</u>

Shashi Tripathi was appointed to serve as a member of the Board effective upon the closing of the Business Combination. He was appointed as a director of Damon in August 2024. Mr. Tripathi is a seasoned entrepreneur, investor, and advisor with extensive experience in technology, operations, supply chain, and manufacturing. He has served on the boards of several companies and has a proven track record in regulated industries, having received accolades such as the Best Patient Engagement Strategy and Medical Design Excellence awards. Mr. Tripathi has successfully led three companies to exits and since October 2019 has served as the founder and Managing Partner of Nurture Growth Fund, which invests in a diverse range of sectors including artificial intelligence, SaaS, digital health, and FinTech. Prior to his service with Damon, he has served as Chief Operating Officer and Chief Technology Officer of ImpediMed from July 2018 to June 2024. Additionally, he is currently the CEO of Sleepiz USA. Mr. Tripathi holds a master's degree in industrial engineering and a bachelor's degree in mechanical engineering. His valuable experience as an investor and advisor to early stage, pre-IPO companies across a variety of sectors led us to conclude that he should serve as a member of the Board.

**Family Relationships**

There are no family relationships among any of our officers or directors.

**Involvement in Certain Legal Proceedings**

To the best of our knowledge, except as described below, none of our directors or executive officers has, during the past ten years:

● been convicted in a criminal proceeding or been subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);

● had any bankruptcy petition filed by or against the business or property of the person, or of any partnership, corporation or business association of which he was a general partner or executive officer, either at the time of the bankruptcy filing or within two years prior to that time;

● been subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction or federal or state authority, permanently or temporarily enjoining, barring, suspending or otherwise limiting, his involvement in any type of business, securities, futures, commodities, investment, banking, savings and loan, or insurance activities, or to be associated with persons engaged in any such activity;

● been found by a court of competent jurisdiction in a civil action or by the SEC or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated;

● been the subject of, or a party to, any federal or state judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated (not including any settlement of a civil proceeding among private litigants), relating to an alleged violation of any federal or state securities or commodities law or regulation, any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order, or any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or

● been the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.

**Board Composition and Election of Directors**

The Board is comprised of five members made up of a single class of directors. Each director is subject to re-election on an annual basis at each annual meeting of shareholders. The Board of Directors may establish the authorized number of directors from time to time by ordinary resolution. If, at any meeting of shareholders at which there should be an election of directors, the places of any of retiring directors are not filled by that election, those retiring directors who are not re-elected and who are asked by the newly elected directors to continue in office will, if willing to do so, continue in office to complete the number of directors until further new directors are elected at a meeting of shareholders convened for that purpose. If any such election or continuance of directors does not result in the election or continuance of the then-current number of directors, the number of directors of the Company shall be deemed to be set at the number of directors actually elected or continued in office. Our directors hold office until the earlier of their death, resignation, retirement, disqualification or removal or until their successors have been duly elected and qualified. In the event of a casual vacancy in our Board, the remaining directors may fill such vacancy until the next annual meeting of shareholders.

**Director Independence**

We have determined that Mr. Karan Sodhi and Mr. Shashi Tripathi are independent directors in accordance with the listing requirements of Nasdaq. The Nasdaq independence definition includes a series of objective tests, including that the director is not, and has not been for at least three years, one of the Company's employees and that neither the director nor any of his, her or their family members has engaged in various types of business dealings with the Company.

**Committees of the Board of Directors**

Our Board has established an audit committee, a compensation committee and a nominating and corporate governance committee, each of which operate pursuant to a charter to be adopted by our Board of Directors. The Board of Directors may also establish other committees from time to time to assist our company and the Board. Our committees' charters are available on our website at https://damon.com/. The reference to our website address does not constitute incorporation by reference of the information contained at or available through our website, and you should not consider it to be part of this Offering Circular.

**Audit Committee**

Our Audit Committee consists of Melanie Figueroa, Shashi Tripathi and Karan Sodhi. Mr. Tripathi and Mr. Sodhi have been determined by the Board to satisfy the independence requirements under Nasdaq listing standards and Rule 10A-3(b)(1) of the Exchange Act. The chair of our Audit Committee is Karan Sodhi, who the Board has determined is an "audit committee financial expert" within the meaning of SEC regulations. Each member of our Audit Committee can read and understand fundamental financial statements in accordance with applicable requirements. In arriving at these determinations, the Board has examined each Audit Committee member's scope of experience and the nature of their employment in the corporate finance sector.

The principal duties and responsibilities of our Audit Committee include, among other things:

● reviewing and recommending for approval to the Board the annual financial statements (individually and collectively, the "**annual Financial Statements** "), accounting policies that affect the Financial Statements, annual Management Discussion and Analysis ()"**MD&A**") and associated press release;

● reviewing and approving, or recommending for approval to the Board, the quarterly financial statements (individually and collectively, the "**quarterly Financial Statements** ", collectively with the annual Financial Statements, the "**Financial Statements** "), quarterly MD&A and associated press release;

● reviewing the annual report for consistency with the financial disclosure referenced in the annual Financial Statements;

● assessing the adequacy of procedures in place for the review of our public disclosure of financial information extracted or derived from annual or quarterly Financial Statements and periodically assess the adequacy of such procedures;

● reviewing any significant issues affecting financial reports;

● reviewing any developments in the International Financial Reporting Standards as issued by the IFRS Foundation and the International Accounting Standards Board (IASB) or U.S. Generally Accepted Accounting Principles as issued by the Financial Accounting Standards Board (FASB) that could affect the Company;

● reviewing and approving any earnings guidance to be provided by the Company;

● coordinating the oversight and reviewing the adequacy of our internal control over financial reporting;

● establishing policies and procedures for the receipt and retention of accounting-related complaints and concerns;

● reviewing with management, external auditors and legal counsel any material litigation claims or other contingencies, including tax assessments, and adequacy of financial provisions, that could materially affect financial reporting;

● reviewing with our Chief Executive Officer and the Chief Financial Officer our disclosure controls and procedures, including any significant deficiencies in, or material non-compliance with, such controls and procedures;

● discussing with our Chief Executive Officer and the Chief Financial Officer all elements of certification required pursuant to National Instrument 52-109 and the Sarbanes-Oxley Act of 2002, as applicable;

● reviewing all related person transactions for potential conflict of interest situations and approving all such transactions;

● appointing, approving the compensation of, and assessing the independence of our independent registered public accounting firm;

● pre-approving auditing and permissible non-audit services, and the terms of such services, to be provided by our independent registered public accounting firm;

● reviewing the overall audit plan with our independent registered public accounting firm and members of management responsible for preparing our financial statements;

● reviewing and discussing with management and our independent registered public accounting firm our annual and quarterly financial statements and related disclosures as well as critical accounting policies and practices used by us;

● reviewing and monitoring the processes in place to identify and manage the principal risks that could impact our financial reporting;

● reviewing and approving corporate investment policies; and

● assessing the effectiveness of the overall process for identifying principal business risks and report thereon to the Board.

**Compensation Committee**

Our Compensation Committee consists of Melanie Figueroa, Shashi Tripathi and Karan Sodhi. Each of Mr. Tripathi and Mr. Sodhi were determined by the Board to satisfy the independence requirements under Nasdaq listing standards and is a "non-employee director" as defined in Rule 16b-3 promulgated under the Exchange Act. The chair of our Compensation Committee is Shashi Tripathi. The principal duties and responsibilities of our Compensation Committee include, among other things:

● overseeing and administering our incentive compensation and other equity-based plans and recommending any changes to the Board as needed, as well as exercising the authority of the Board with respect to the administration of such plans;

● reviewing and approving the corporate goals and objectives with respect to compensation for our Chief Executive Officer;

● reviewing and recommending to the board of directors the evaluation process and compensation structure of our other executive officers;

● periodically reviewing and making recommendations to the Board regarding the compensation of non-management directors, including Board and Committee retainers, meeting fees, equity-based compensation and such other forms of compensation and benefits as the Committee may consider appropriate;

● overseeing the appointment and removal of executive officers, and reviewing and approving for executive officers, including the Chief Executive Officer, any employment, severance or change in control agreements; and

● approving any loans to employees as allowed by law.

**Nominating and Corporate Governance Committee**

Our Nominating and Corporate Governance Committee consists of Melanie Figueroa, Shashi Tripathi and Karan Sodhi. Mr. Tripathi and Mr. Sodhi were determined by the Board to satisfy the independence requirements under Nasdaq listing standards. The chair of our Nominating and Corporate Governance Committee is Shashi Tripathi.

The Nominating and Corporate Governance Committee's responsibilities include, among other things:

● identifying and recommending to the Board individuals qualified to be nominated for election to the Board of Directors;

● recommending to the Board the members and Chair for each Board committee;

● reviewing and assessing our corporate governance principles and make recommendations for changes thereto to the Board; and

● establishing and overseeing appropriate director orientation and continuing education programs.

**Board Leadership Structure**

The Board and management believe that the choice of whether the Chair of the Board should be an executive of our company, or a non-executive or independent director, depends upon a number of factors, taking into account the candidates for the position and the best interests of our Company and our shareholders. Shashi Tripathi serves as the Board Chair and is an independent director. However, the Board may decide in the future to unite the roles of Chairman and Chief Executive Officers if it determines that such structure provides better and more effective oversight and management of the Company. In such case, the Board may also consider appointing a lead independent director, if the circumstances warrant it. When the Board convenes for a meeting, it is expected that the nonmanagement directors will meet in one or more executive sessions, if the circumstances warrant it.

**Role of Board in Risk Oversight Process**

The Board is responsible for the oversight of the Company's risk management processes and, either as a whole or through its committees, regularly discusses with management the Company's major risk exposures, their potential impact on the Company's business and the steps the Company takes to manage them. The risk oversight process includes receiving regular reports from board committees and members of senior management to enable the Board to understand the Company's risk identification, risk management and risk mitigation strategies with respect to areas of potential material risk, including operations, finance, legal, regulatory, strategic and reputational risk.

The Audit Committee reviews and monitors the processes in place to identify and manage the principal risks that could impact our financial reporting. It also reviews and approves corporate investment policies and assesses the effectiveness of our overall process for identifying principal business risks. Oversight by the Audit Committee includes direct communication with the Company's external auditors, and discussions with management regarding significant risk exposures and the actions management has taken to limit, monitor or control such exposures. The Compensation Committee is responsible for assessing whether any of the Company's compensation policies or programs has the potential to encourage excessive risk-taking. The Nominating and Corporate Governance Committee manages risks associated with the independence of the Board and corporate practices. While each committee is responsible for evaluating certain risks and overseeing the management of such risks, the entire Board is regularly informed through committee reports about such risks. Matters of significant strategic risk is considered by the Board as a whole.

**Compensation Committee Interlocks and Insider Participation**

No member of the Compensation Committee serves or served during the fiscal year ended June 30, 2024, as a member of the Board or compensation committee of a company that has one or more executive officers serving as a member of the board of directors or compensation committee.

**Director Qualifications**

The Nominating and Corporate Governance Committee is responsible for reviewing with the Board, on an annual basis, the appropriate characteristics, skills and experience required for the Board as a whole and its individual members. There is no difference in the manner in which the Nominating and Corporate Governance Committee evaluates nominees for director based on whether the nominee is recommended by a shareholder.

**Arrangements between Officers and Directors**

To our knowledge, there is no arrangement or understanding between any of our officers or directors and any other person, including directors, pursuant to which the officer was selected to serve as an officer or director.

**Code of Business Conduct and Ethics**

The Company adopted a written code of business conduct and ethics that applies to its directors, officers and employees, including its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. A copy of the code is posted on the corporate website at *https://damon.com/*. In addition, the Company intends to post on its website all disclosures that are required by law concerning any amendments to, or waivers from, any provision of the code. The reference to the Company's website address does not constitute incorporation by reference of the information contained at or available through its website, and you should not consider it to be a part of this Offering Circular.

**Foreign Private Issuer Status**

The Company has determined that it qualifies as a "foreign private issuer," as such term is defined in Rule 3b-4 under the Exchange Act, based on the applicable criteria as of the last business day of the Company's most recently completed second fiscal quarter, ended December 31, 2024. Notwithstanding the Company's qualification as a foreign private issuer, the Company has voluntarily chosen to file with the SEC periodic and current reports and registration statements on forms prescribed for U.S. domestic issuers, including annual reports on Form 10-K, quarterly reports on Form 10-Q, including this quarterly report, current reports on Form 8-K, and registration statements on Form S-1, instead of filing on the reporting and registration forms available to foreign private issuers. The SEC Forms prescribed for U.S. domestic issuers are more detailed and extensive in certain respects, and must be filed more promptly, than the forms currently available to foreign private issuers.

Although the Company has chosen to file periodic and current reports on U.S. domestic issuer forms, the Company will maintain its status as a foreign private issuer as long as it meets the qualifications for a foreign private issuer under the Exchange Act. Accordingly, the Company intends to avail itself of exemptions from certain provisions of the Exchange Act and the rules thereunder that are applicable to U.S. domestic public companies.

As a foreign private issuer, the Company will avail itself of the following exemptions from the provisions of the Exchange Act and the rules thereunder that are applicable to U.S. domestic issuers, including:

● sections of the Exchange Act that regulate the solicitation of proxies, consents or authorizations in respect of any securities registered under the Exchange Act; and

● sections of the Exchange Act that require insiders to file public reports of their share ownership and trading activities and that impose liability on insiders who profit from trades made in a short period of time.

Accordingly, the Company's officers, directors and principal shareholders are exempt from the requirements to report transactions in the Company's equity securities and from the short-swing profit liability provisions contained in Section 16 of the Exchange Act. As a foreign private issuer, the Company is also not subject to the requirements of Regulation FD (Fair Disclosure) promulgated under the Exchange Act.

**EXECUTIVE COMPENSATION**

**Summary Compensation Table**

The information included in the Summary Compensation Table below reflects compensation awarded or paid by the Company during fiscal years ended June 30, 2024 and 2023 to our sole officer and director prior to the consummation of the Business Combination. The individual included in the table is referred to herein as the Company's named executive officer ("**NEO**").

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary<br> ($)** | **Bonus<br> ($)** | **Stock<br> Awards<br> ($)** | **Option<br> Awards<br> ($)** | **All Other<br> Compensation<br> ($)<sup>(1)</sup>** | **Total<br> ($)** |
| Nadir Ali, | 2004 | $None | $None | $None | $219627<sup>(2)</sup> | $45000 | $264627 |
| Chief Executive Officer <sup>(3)</sup> | 2023 | $None | $None | $None | $None | $None | $None |

---

(1) Includes service fees paid by Grafiti Holding
 to Mr. Ali for the period from April 1, 2024 through June 30, 2024.

(2) The fair value of employee option grants
 were estimated on the date of grant using the Black-Scholes option valuation model with probability
 weighted scenarios of the company "As-Is" on a standalone basis and on a "Merger"
 basis assuming the completion of the Business Combination.

(3) Mr. Ali resigned from all director and officer
 positions with the Company upon the closing of the Business Combination.

**Outstanding Equity Awards as Fiscal Year-End**

Other than as set forth below, there were no outstanding unexercised options, unvested stock, and/or equity incentive plan awards issued to our NEO as of June 30, 2024.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Option Awards** | **Option Awards** | **Option Awards** | **Option Awards** | **Stock Awards** | **Stock Awards** | **Stock Awards** | **Stock Awards** |
| **Name** | **Grant Date** | **Number of securities underlying unexercised options (#) exercisable** | **Equity incentive plan awards: number of securities underlying unexercised unearned options (#)** | **Option exercise prices ($)** | **Option expiration<br> date** | **Number of shares of restricted stock #** | **Market value of shares of restricted stock ($)** |
| Nadir Ali | 06/11/2024 | 355384<sup>(1)</sup> |  | $0.06336 | 12/31/2024 |  |  |

---

(1) This option is 100% vested.

**Advisory Services and Consulting Agreement with Nadir Ali**

The Company paid Mr. Ali a fee of $15,000 per month for services rendered to the Company since April 1, 2024 and until the closing of the Business Combination. Grafiti Holding has entered into a Consulting Agreement with Mr. Ali on September 25, 2024 (the "**Ali Consulting Agreement**"), pursuant to which Mr. Ali will advise on public company reporting and compliance matters, business development, growth strategies and other operational matters as requested.

Pursuant to the terms of the Ali Consulting Agreement, the Company agreed to pay Mr. Ali, through a wholly owned affiliated entity, 3AM Investments LLC, a fee of $15,000 per month for services rendered to the Company since April 1, 2024 until the end of the month of the closing of the Business Combination. In connection with the terms of the Ali Consulting Agreement, Mr. Ali will advise on public company reporting and compliance matters, strategic business development and growth strategies and other operational matters as requested.

As compensation under the Ali Consulting Agreement, Mr. Ali is entitled to a fee of $325,000 upon closing the Business Combination and his monthly fee will increase to $54,167 per month beginning on the first of each month following the closing of the Business Combination through the remainder of the term of the agreement.

Unless otherwise terminated earlier pursuant to the Ali Consulting Agreement, the agreement will continue for a period of six months following the closing of the Business Combination. The Company has the right to terminate the Ali Consulting Agreement with 30 days' notice; however, if it is terminated by the Company prior to the six month anniversary of the closing of the Business Combination (the "**Ali Guaranteed Period**") for any reason other than the gross negligence, recklessness or willful misconduct of Mr. Ali, the monthly fee will continue to be paid for the remainder of the Ali Guaranteed Period. Mr. Ali has the right to terminate the Ali Consulting Agreement with 30 days' notice for specified reasons, including the Company's failure to make timely payments, gross negligence, recklessness, willful misconduct, or the filing of bankruptcy by the Company. In such cases, the monthly fee for the remainder of the Ali Guaranteed Period will continue to be paid.

**Stock Incentive Plan**

On June 11, 2024, the Company's Board adopted a Stock Incentive Plan (the "**Stock Incentive Plan**"), which was approved by the Company's the sole shareholder on June 11, 2024. Below is a summary of the Stock Incentive Plan.

**Overview and Purpose**

The Stock Incentive Plan provides flexibility to the Company to grant equity-based incentive awards (each, an "**Award**") in the form of Options, RSUs, Restricted Shares, PSUs and DSUs, as described in further detail below.

The purpose of the Stock Incentive Plan is to, among other things, provide the Company with a share-related mechanism to attract, retain and motivate qualified directors, employees and consultants of the Company and its subsidiaries, to reward such of those directors, employees and consultants as may be granted awards under the Stock Incentive Plan by the Board from time to time for their contributions toward the long-term goals and success of the Company, and to enable and encourage such directors, employees and consultants to acquire Shares as long-term investments and proprietary interests in the Company.

**Material Terms of the Stock Incentive Plan**

<u>Shares Subject to the Stock Incentive Plan</u>

The maximum aggregate number of common shares that may be issued pursuant to Awards granted under the Plan (the "**Share Reserve**") shall initially be 10,000,000, and the Share Reserve shall automatically increase on the first day of each calendar year beginning January 1, 2025, by a number of shares equal to the greatest of: (i) 3,000,000 Common Shares; (ii) twenty percent (20%) of the outstanding Common shares on the last day of the immediately preceding calendar quarter; or (iii) such number of Common Shares determined by the Plan Administrator. The Company shall at all times while the Stock Incentive Plan is in effect reserve such number of Common Shares as will be sufficient to satisfy the requirements of outstanding Awards granted under the Stock Incentive Plan. The Common Shares subject to the Stock Incentive Plan shall be either authorized and unissued or treasury common shares. Notwithstanding the foregoing, the aggregate number of Common Shares that may be issued during the term of the Stock Incentive Plan may not exceed 40,000,000. For clarity, the Share Reserve is a limitation on the number of Common Shares that may be issued pursuant to the Stock Incentive Plan. As a single Common Share may be subject to grant more than once (e.g., if a Common Share subject to an Award is forfeited, it may be made subject to grant again under the Stock Incentive Plan), the Share Reserve is not a limit on the number of Awards that can be granted. Up to 10,000,000 Common Shares may (but need not be) issued pursuant to the exercise of "incentive stock options" (within the meaning of Section 422 of the United States Internal Revenue Code of 1986, as amended (the "**Code**")) granted under the Stock Incentive Plan.

Any Common Shares issued by the Company through the assumption or substitution of outstanding stock options or other equity-based awards from an acquired company will not reduce the number of Common Shares available for issuance pursuant to the exercise of Awards granted under the Stock Incentive Plan.

<u>Administration of the Stock Incentive Plan</u>

The Stock Incentive Plan designates the Board as the initial Plan Administrator (as defined in the Stock Incentive Plan), subject to the ability of the Board to delegate from time to time all or any of the powers conferred on the Plan Administrator to a committee of the Board. The Board has resolved to delegate all powers of administration of the Stock Incentive Plan to the Compensation Committee.

The Plan Administrator determines which directors, officers, consultants and employees are eligible to receive Awards under the Stock Incentive Plan, the time or times at which Awards may be granted, the conditions under which awards may be granted or forfeited to the Company, the number of Common Shares to be covered by any Award, the exercise price of any Award, whether restrictions or limitations are to be imposed on the Common Shares issuable pursuant to grants of any Award, and the nature of any such restrictions or limitations, any acceleration of exercisability or vesting, or waiver of termination regarding any Award, based on such factors as the Plan Administrator may determine.

In addition, the Plan Administrator interprets the Stock Incentive Plan and may adopt guidelines and other rules and regulations relating to the Stock Incentive Plan and make all other determinations and take all other actions necessary or advisable for the implementation and administration of the Stock Incentive Plan.

<u>Eligibility</u>

All directors, employees and consultants are eligible to participate in the Stock Incentive Plan. The extent to which any such individual is entitled to receive a grant of an Award pursuant to the Stock Incentive Plan will be determined in the sole and absolute discretion of the Plan Administrator.

<u>Types of Awards</u>

Awards of Options, RSUs, Restricted Shares, PSUs and DSUs may be made under the Stock Incentive Plan. All of the Awards described below are subject to the conditions, limitations, restrictions, exercise price, vesting, settlement and forfeiture provisions determined by the Plan Administrator, in its sole discretion, subject to such limitations provided in the Stock Incentive Plan and will generally be evidenced by an Award agreement. In addition, subject to the limitations provided in the Stock Incentive Plan and in accordance with applicable law, the Plan Administrator may accelerate or defer the vesting or payment of Awards, cancel or modify outstanding Awards and waive any condition imposed with respect to Awards or common shares issued pursuant to Awards.

<u>Options</u>

An Option entitles a holder thereof to purchase a prescribed number of Common Shares at an exercise price set at the time of the grant. The Plan Administrator will establish the exercise price at the time each Option is granted. Except as otherwise determined by the Plan Administrator and specified in an Award agreement, exercise price of an Option granted under the Stock Incentive Plan will not be less than the greater of the closing market price of the Common Shares on (i) the trading day prior to the date of grant of the Option or (ii) the date of grant of the Option. Subject to any accelerated termination as set forth in the Stock Incentive Plan, each Option expires on its respective expiry date. The Plan Administrator will have the authority to determine the vesting terms applicable to grants of Options. Once an Option becomes vested, it shall remain vested and shall be exercisable until expiration or termination of the Option, unless otherwise specified by the Plan Administrator, or as otherwise set forth in any written employment agreement, Award agreement or other written agreement between the Company or a subsidiary of the Company and the participant. The Plan Administrator has the right to accelerate the date upon which any Option becomes exercisable. The Plan Administrator may provide at the time of granting an Option that the exercise of that Option is subject to restrictions, in addition to those specified in the Stock Incentive Plan, such as vesting conditions relating to the attainment of specified performance goals.

Unless otherwise specified by the Plan Administrator at the time of granting an Option and set forth in the particular Award agreement, an exercise notice must be accompanied by payment of the exercise price. A participant may, in lieu of exercising an Option pursuant to an exercise notice, elect to surrender such Option to the Company (a "**Cashless Exercise**") in consideration for an amount from the Company equal to (i) the closing market price of the Common Shares issuable on the exercise of such Option (or portion thereof) as of the date such Option (or portion thereof) is exercised, less (ii) the aggregate exercise price of the Option (or portion thereof) surrendered relating to such Common Shares (the "**In-the-Money Amount**"), by written notice to the Company indicating the number of Options such participant wishes to exercise using the Cashless Exercise, and such other information that the Company may require. Subject to the provisions of the Stock Incentive Plan, the Company will satisfy payment of the In-the-Money Amount by delivering to the participant such number of Common Shares having a fair market value equal to the In-the-Money Amount.

<u>Restricted Share Units</u>

A RSU is a unit equivalent in value to a Common Shares credited by means of a bookkeeping entry in the books of the Company which entitles the holder to receive one Common Shares (or the value thereof) for each RSU after a specified vesting period. The Plan Administrator may, from time to time, subject to the provisions of the Stock Incentive Plan and such other terms and conditions as the Plan Administrator may prescribe, grant RSUs to any participant in respect of a bonus or similar payment in respect of services rendered by the applicable participant in a taxation year.

The number of RSUs (including fractional RSUs) granted at any particular time under the Stock Incentive Plan will be calculated by dividing: (a) the amount that is to be paid in RSUs, as determined by the Plan Administrator; by (b) the greater of (i) the market price of a Common Shares on the date of grant and (ii) such amount as determined by the Plan Administrator in its sole discretion.

The Plan Administrator shall have the authority to determine the settlement and any vesting terms applicable to the grant of RSUs, provided that the terms applicable to RSUs granted to U.S. taxpayers comply with Section 409A of the Code, to the extent applicable.

Upon settlement, holders will redeem each vested RSU for one fully paid and non-assessable Common Shares in respect of each vested RSU.

<u>Restricted Shares</u>

The Plan Administrator may, from time to time, subject to the provisions of the Stock Incentive Plan and such other terms and conditions as the Plan Administrator may prescribe, grant Restricted Shares to any participant. Restricted Shares shall be subject to such restrictions on transferability, risk of forfeiture and other restrictions, if any, as the Plan Administrator may impose, which restrictions may lapse separately or in combination at such times, under such circumstances (including based on achievement of performance goals and/or future service requirements), in such installments or otherwise, as the Plan Administrator may determine at the date of grant or thereafter. During the restricted period applicable to a Restricted Share, the Restricted Share may not be sold, transferred, pledged, hypothecated, margined or otherwise encumbered by the participant.

As a condition to the grant of an Award of Restricted Shares, the Plan Administrator may allow a participant to elect, or may require, that any cash dividends paid on a Restricted Share be automatically reinvested in additional Restricted Shares, applied to the purchase of additional Awards under this Plan or deferred without interest to the date of vesting of the associated Award of Restricted Shares; provided, that, to the extent applicable, any such election is intended to comply with Section 409A. Unless otherwise determined by the Plan Administrator and specified in the applicable Award Agreement, Common Shares distributed in connection with a share split or share dividend, and other property (other than cash) distributed as a dividend, will be subject to restrictions and a risk of forfeiture to the same extent as the Restricted Share with respect to which such share or other property has been distributed.

<u>Performance Share Units</u>

A PSU is a unit equivalent in value to a Common Shares credited by means of a bookkeeping entry in the books of the Company which entitles the holder to receive one Common Shares for each PSU after specific performance-based vesting criteria determined by the Plan Administrator, in its sole discretion, have been satisfied. The Plan Administrator may, from time to time, subject to the provisions of the Stock Incentive Plan and such other terms and conditions as the Plan Administrator may prescribe, grant PSUs to any participant in respect of services rendered by the applicable participant in a tax year. The performance goals to be achieved during any performance period, the length of any performance period, the amount of any PSUs granted, the effect of termination of a participant's service and the settlement terms pursuant to any PSU will be determined by the Plan Administrator and by the other terms and conditions of any PSU, all as set forth in the applicable Award agreement.

The Plan Administrator shall have the authority to determine the settlement and any vesting terms applicable to the grant of PSUs, provided that the terms applicable to PSUs granted to U.S. taxpayers comply with Section 409A of the Code, to the extent applicable. Upon settlement, holders will redeem each vested PSU for one fully paid and non-assessable Common Share in respect of each vested PSU.

<u>Deferred Share Units</u>

A DSU is a unit equivalent in value to a Common Shares credited by means of a bookkeeping entry in the books of the Company which entitles the holder to receive one Common Share (or, at the election of the holder and subject to the approval of the Plan Administrator, the cash value thereof) for each DSU on a future date. The Board may fix from time to time a portion of the total compensation (including annual retainer) paid by the Company to a director in a calendar year for service on the Board (the "**Director Fees**") that are to be payable in the form of DSUs. In addition, each director is given, subject to the provisions of the Stock Incentive Plan, the right to elect to receive a portion of the cash Director Fees owing to them in the form of DSUs.

Except as otherwise determined by the Plan Administrator or as set forth in the particular Award agreement, DSUs shall vest immediately upon grant. The number of DSUs (including fractional DSUs) granted at any particular time will be calculated by dividing: (a) the amount of Director Fees that are to be paid in DSUs, as determined by the Plan Administrator; by (b) the market price of a Common Share on the date of grant. Upon settlement, holders will redeem each vested DSU for: (a) one fully paid and non-assessable Common Share in respect of each vested DSU, or (b) at the election of the holder and subject to the approval of the Plan Administrator, a cash payment on the date of settlement. Any cash payments made under the Stock Incentive Plan by the Company to a participant in respect of DSUs to be redeemed for cash shall be calculated by multiplying the number of DSUs to be redeemed for cash by the market price per Common Share as at the settlement date.

<u>Dividend Equivalents</u>

Except as otherwise determined by the Plan Administrator or as set forth in the particular Award agreement, RSUs, PSUs and DSUs shall be credited with dividend equivalents in the form of additional RSUs, PSUs and DSUs, as applicable, as of each dividend payment date in respect of which normal cash dividends are paid on Common Shares. Dividend equivalents shall vest in proportion to, and settle in the same manner as, the Awards to which they relate. Such dividend equivalents shall be computed by dividing: (a) the amount obtained by multiplying the amount of the dividend declared and paid per Common Share by the number of RSUs, PSUs and DSUs, as applicable, held by the participant on the record date for the payment of such dividend; by (b) the market price at the close of the first business day immediately following the dividend record date, with fractions computed to three decimal places.

<u>Black-out Periods</u>

In the event an Award expires, at a time when a scheduled blackout is in place or an undisclosed material change or material fact in the affairs of the Company exists, the expiry of such Award will be the date that is ten business days after which such scheduled blackout terminates or there is no longer such undisclosed material change or material fact.

<u>Term</u>

No Awards may be granted under the Stock Incentive Plan on or after the tenth anniversary of the Stock Incentive Plan.

While the Stock Incentive Plan does not stipulate a specific term for Awards granted thereunder, as discussed below, Awards may not expire beyond 10 years from its date of grant, except where shareholder approval is received or where an expiry date would have fallen within a blackout period of the Company. All Awards must vest and settle in accordance with the provisions of the Stock Incentive Plan and any applicable Award agreement, and which Award agreement may include an expiry date for a specific Award.

<u>Termination of Employment or Services</u>

The following describes the impact of certain events upon the participants under the Stock Incentive Plan, including termination for cause, resignation, termination without cause, disability, death or retirement, subject, in each case, to the terms of a participant's applicable employment agreement, Award agreement or other written agreement:

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Termination for Cause or upon Termination</u>:
 Any Option or other Award held by the participant that has not been exercised, surrendered
 or settled as of the termination date (as defined in the Stock Incentive Plan) shall be immediately
 forfeited and cancelled as of the termination date;

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Termination without Cause</u>: A portion
 of any unvested Options or other Awards shall immediately vest, such portion to be equal
 to the number of unvested Options or other Awards held by the participant as of the termination
 date multiplied by a fraction the numerator of which is the number of days between the date
 of grant and the termination date and the denominator of which is the number of days between
 the date of grant and the date any unvested Options or other Awards were originally scheduled
 to vest. Any vested Options may be exercised by the participant at any time during the period
 that terminates on the earlier of: (a) the expiry date of such Option; and (b) the date that
 is 90 days after the termination date. If an Option remains unexercised upon the earlier
 of (a) or (b), the Option shall be immediately forfeited and cancelled for no consideration
 upon the termination of such period. In the case of a vested Award other than an Option,
 such Award will be settled within 90 days after the termination date;

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Disability</u>: A portion of any unvested
 Options or other Awards shall immediately vest, such portion to be equal to the number of
 unvested Options or other Awards held by the participant as of the termination date multiplied
 by a fraction the numerator of which is the number of days between the date of grant and
 the termination date and the denominator of which is the number of days between the date
 of grant and the date any unvested Options or other Awards were originally scheduled to vest.
 Any vested Option may be exercised by the participant at any time until the expiry date of
 such Option. Any vested Option may be exercised by the participant at any time until the
 expiry date of such Option. Any vested Award other than an Option will be settled within
 90 days after the termination date;

&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Death</u>: A portion of any unvested
 Options or other Awards shall immediately vest, such portion to be equal to the number of
 unvested Options or other Awards held by the participant as of the termination date multiplied
 by a fraction the numerator of which is the number of days between the date of grant and
 the termination date and the denominator of which is the number of days between the date
 of grant and the date any unvested Options or other Awards were originally scheduled to vest. Any vested Option may be exercised
by the participant's beneficiary or legal representative (as applicable) at any time during the period that terminates on the earlier
of: (a) the expiry date of such Option; and (b) the first anniversary of the date of the death of such participant. If an Option remains
unexercised upon the earlier of (a) or (b), the Option shall be immediately forfeited and cancelled for no consideration upon the termination
of such period. In the case of a vested Award other than an Option, such Award will be settled with the participant's beneficiary
or legal representative (as applicable) within 90 days after the date of the Participant's death; and

&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Retirement</u>: A portion of any unvested
 Options or other Awards shall immediately vest, such portion to be equal to the number of
 unvested Options or other Awards held by the participant as of the termination date multiplied
 by a fraction the numerator of which is the number of days between the date of grant and
 the termination date and the denominator of which is the number of days between the date
 of grant and the date any unvested Options or other Awards were originally scheduled to vest.
 Any vested Option may be exercised by the participant at any time during the period that
 terminates on the earlier of: (a) the expiry date of such Option; and (b) the third anniversary
 of the participant's date of retirement. If an Option remains unexercised upon the
 earlier of (a) or (b), the Option shall be immediately forfeited and cancelled for no consideration
 upon the termination of such period. In the case of a vested Award other than an Option,
 such Award will be settled within 90 days after the participant's retirement. Notwithstanding
 the foregoing, if, following his or her retirement, the participant commences on the Commencement
 Date (as defined in the Stock Incentive Plan) employment, consulting or acting as a director
 of the Company or any of its subsidiaries (or in an analogous capacity) or otherwise as a
 service provider to any person that carries on or proposes to carry on a business competitive
 with the Company or any of its subsidiaries, any Option or other Award held by the participant
 that has not been exercised or settled as of the commencement date shall be immediately forfeited
 and cancelled as of the Commencement Date.

<u>Change in Control</u>

Under the Stock Incentive Plan, except as may be set forth in an employment agreement, Award agreement or other written agreement between the Company or a subsidiary of the Company and a participant:

&nbsp;&nbsp;&nbsp;&nbsp;(a) the Plan Administrator may, without the
 consent of any participant, take such steps as it deems necessary or desirable, including
 to cause: (i) the conversion or exchange of any outstanding Awards into or for rights or
 other securities of substantially equivalent value, as determined by the Plan Administrator
 in its discretion, in any entity participating in or resulting from a Change in Control (as
 defined below); (ii) outstanding Awards to vest and become exercisable, realizable or payable,
 or restrictions applicable to an Award to lapse, in whole or in part prior to or upon consummation
 of a Change in Control, and, to the extent the Plan Administrator determines, terminate upon
 or immediately prior to the effectiveness of such Change in Control; (iii) the termination
 of an Award in exchange for an amount of cash and/or property, if any, equal to the amount
 that would have been attained upon the exercise or settlement of such Award or realization
 of the participant's rights as of the date of the occurrence of the transaction; (iv)
 the replacement of such Award with other rights or property selected by the Board in its
 sole discretion where such replacement would not adversely affect the holder; or (v) any
 combination of the foregoing; provided that: (A) in taking any of the foregoing actions,
 the Plan Administrator will not be required to treat all Awards similarly in the transaction;
 and (B) in the case of Options, RSUs and PSUs held by a Canadian taxpayer, the Plan Administrator
 may not cause the Canadian taxpayer to receive any property in connection with a Change in
 Control other than rights to acquire shares of a corporation or units of a "mutual
 fund trust" (as defined in the Income Tax Act (Canada) (the "**Tax Act** "))
 of the Company or a "qualifying person" (as defined in the Tax Act) that does
 not deal at arm's length (for purposes of the Tax Act) with the Company, as applicable,
 at the time such rights are issued or granted;

&nbsp;&nbsp;&nbsp;&nbsp;(b) if within 12 months following the completion
 of a transaction resulting in a Change in Control (as defined below), a participant's
 employment, consultancy or directorship is terminated by the Company or a subsidiary of the Company
without Cause (as defined in the Stock Incentive Plan), without any action by the Plan Administrator:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any unvested Awards held by the participant
 at the termination date shall immediately vest; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any vested Awards may be exercised, surrendered
 to the Company, or settled by the participant at any time during the period that terminates
 on the earlier of: (i) the expiry date of such Award; and (ii) the date that is 90 days after
 the termination date. Any Award that has not been exercised, surrendered or settled at the
 end of such period being immediately forfeited and cancelled; and

&nbsp;&nbsp;&nbsp;&nbsp;(c) unless otherwise determined by the Plan
 Administrator, if, as a result of a Change in Control, the common shares will cease trading
 on Nasdaq, the Company may terminate all of the Awards (other than an Option, RSU or PSU
 held by a participant that is a resident of Canada for the purposes of the TaxAct) at the
 time of and subject to the completion of the Change in Control transaction by paying to each
 holder at or within a reasonable period of time following completion of such Change in Control
 transaction an amount for each Award equal to the fair market value of the Award held by
 such participant as determined by the Plan Administrator, acting reasonably, provided that
 any vested Awards granted to U.S. taxpayers will be settled within 90 days of the Change
 in Control.

Subject to certain exceptions, a "Change in Control" includes: (i) any transaction pursuant to which a person or group acquires more than 50% of the outstanding common shares (assuming conversion of the other shares); (ii) the sale of all or substantially all of the Company's assets; (iii) the dissolution or liquidation of the Company; (iv) the acquisition of the Company via consolidation, merger, exchange of securities, purchase of assets, amalgamation, statutory arrangement or otherwise; (v) individuals who comprise the Board at the last annual meeting of shareholders (the "**Incumbent Board**") cease to constitute at least a majority of the Board, unless the election, or nomination for election by the shareholders, of any new director was approved by a vote of at least a majority of the Incumbent Board, in which case such new director shall be considered as a member of the Incumbent Board; or (vi) any other event which the Board determines to constitute a change in control of the Company.

<u>Non-Transferability of Awards</u>

Except as permitted by the Plan Administrator and to the extent that certain rights may pass to a beneficiary or legal representative upon death of a participant, by will or as required by law, no assignment or transfer of Awards, whether voluntary, involuntary, by operation of law or otherwise, vests any interest or right in such Awards whatsoever in any assignee or transferee and immediately upon any assignment or transfer, or any attempt to make the same, such Awards will terminate and be of no further force or effect. To the extent that certain rights to exercise any portion of an outstanding Award pass to a beneficiary or legal representative upon the death of a participant, the period in which such Award can be exercised by such beneficiary or legal representative shall not exceed one year from the participant's death.

<u>Amendments to the Stock Incentive Plan</u>

The Plan Administrator may also from time to time, without notice and without approval of the holders of Common Shares, amend, modify, change, suspend or terminate the Stock Incentive Plan or any Awards granted pursuant thereto as it, in its discretion, determines appropriate, provided that: (a) no such amendment, modification, change, suspension or termination of the Stock Incentive Plan or any Award granted pursuant thereto may materially impair any rights of a participant or materially increase any obligations of a participant under the Stock Incentive Plan without the consent of such participant, unless the Plan Administrator determines such adjustment is required or desirable in order to comply with any applicable securities laws or stock exchange requirements; and (b) any amendment that would cause an Award held by a U.S. Taxpayer to be subject to the income inclusion under Section 409A of the Code shall be null and void ab initio.

Notwithstanding the above, the approval of shareholders is required to effect any of the following amendments to the Stock Incentive Plan:

&nbsp;&nbsp;&nbsp;&nbsp;(a) increasing the number of Common Shares
 reserved for issuance under the Stock Incentive Plan, except pursuant to the provisions in
 the Stock Incentive Plan which permit the Plan Administrator to make equitable adjustments
 in the event of transactions affecting the Company or its capital;

&nbsp;&nbsp;&nbsp;&nbsp;(b) extending the term of an Option award
 beyond the original expiry date (except where an expiry date would have fallen within a blackout
 period applicable to the participant or within ten business days following the expiry of
 such a blackout period);

&nbsp;&nbsp;&nbsp;&nbsp;(c) extending the term of an Option award
 beyond the original expiry date (except where an expiry date would have fallen within a blackout
 period applicable to the participant or within ten business days following the expiry of
 such a blackout period);

&nbsp;&nbsp;&nbsp;&nbsp;(d) permitting an Option award to be exercisable
 beyond ten years from its date of grant (except where an expiry date would have fallen within
 a blackout period);

&nbsp;&nbsp;&nbsp;&nbsp;(e) increasing or removing the limits on the
 participation of directors;

&nbsp;&nbsp;&nbsp;&nbsp;(f) permitting Awards to be transferred to
 a person;

&nbsp;&nbsp;&nbsp;&nbsp;(g) changing the eligible participants; and

&nbsp;&nbsp;&nbsp;&nbsp;(h) deleting or reducing the range of amendments
 which require approval of the shareholders.

Except for the items listed above, amendments to the Stock Incentive Plan will not require shareholder approval. Such amendments include (but are not limited to): (a) amending the general vesting provisions of an Award; (b) amending the provisions for early termination of Awards in connection with a termination of employment or service; (c) adding covenants of the Company for the protection of the participants; (d) amendments that are desirable as a result of changes in law in any jurisdiction where a participant resides; and (e) curing or correcting any ambiguity or defect or inconsistent provision or clerical omission or mistake or manifest error. Further, the Plan Administrator retains discretion under the Stock Incentive Plan to reprice out-of-the-money Options without obtaining shareholder approve.

<u>Anti-Hedging Policy</u>

Participants are restricted from purchasing financial instruments such as prepaid variable forward contracts, equity swaps, collars, or units of exchange funds that are designed to hedge or offset a decrease in market value of Awards granted to them.

**Policies and Practices for Granting Option Awards**

The Company has not granted any new Option awards since becoming a reporting company, other than the replacement options issued to option holders of Damon Motors pursuant to the plan of arrangement between the Company and Damon Motors. The Compensation Committee does not plan to take material non-public information into account when determining the timing and terms of option Awards, and the Company does not plan to time the disclosure of such material non-public information for purposes of affecting the exercise price of the Options or the value of executive compensation. In addition, the Company does not plan to grant Options during the four business days prior to or the one business day following the filing of a periodic report on Form 10-Q or Form 10-K, or the filing or furnishing of a Form 8-K that discloses material non-public information.

**Executive and Director Compensation**

**Executive Employment Agreements**

The following summarizes the employment agreements with our executive officers appointed upon the closing of the Business Combination, which agreements have been entered into with Damon Motors. Jay Giraud, Derek Dorresteyn and Amber Spencer served until December 4, 2024, January 15, 2025 and December 4, 2024, respectively; and as of the date of this filing, no longer hold any officer or director positions in the Company.

<u>Employment Agreement with Chief Executive Officer</u>

On July 16, 2025, our Board of Directors approved the entering into of a new executive employment services agreement with Dominique Kwong ("Mr. Kwong"), our current Chief Executive Officer ("CEO") and a director, with an initial term commencing on July 16, 2025 and expiring on July 16, 2028 (collectively, the "Kwong Agreement"). The Kwong Agreement supersedes the Company's prior Interim Executive Employment Agreement, dated December 4, 2024, and its Amendment to Interim Executive Agreement, dated May 4, 2025, as between the Company and Mr. Kwong.

The Kwong Agreement Term is subject to automatic renewal on a 90-day to 90-day renewal basis unless either the Company or Mr. Kwong provides written notice not to renew the Kwong Agreement no later than 90 days prior to the end of the then current or renewal Term.

Pursuant to the terms and provisions of the Kwong Agreement: (i) Mr. Kwong provides various employment services to the Company which are inclusive of his duties and responsibilities commensurate with his position as our CEO; and (ii) Mr. Kwong is entitled to: (a) a gross monthly salary of CAD$39,947 (the "Monthly Salary"); (b) a yearly cash bonus (each, a "Bonus") of up to 100% of his then aggregate annual Monthly Salary based upon certain performance goals to be determined from year to year; (c) a short-term incentive payment (each, a "STIP Bonus") from 0% to up to 100% of his then aggregate annual Monthly Salary based upon certain factors to be determined by the Board of Directors (the "Board") and the Company's Compensation Committee from time to time; (d) an initial vesting incentive stock option to purchase up to an aggregate of 1,000,000 common shares of the Company and vesting over a period of 18 months from the date of grant (which are to be awarded); (e) an initial vesting restricted stock unit award (the "RSU") to acquire up to an aggregate of 1,000,000 RSU common shares of the Company and vesting equally over a period of two years from the date of grant (which are to be awarded); (f) participation in any long-term incentive program introduced by the Company from time to time; (g) participation in all Company employee benefit and health insurance plans (each, a "Benefit") at the Company's expense; and (h) four weeks of accrued vacation per calendar year (the "Vacation").

If the Company elects to not renew the Kwong Agreement, and provided that Mr. Kwong is in compliance with the relevant terms and conditions of the Kwong Agreement, the Company shall be obligated to provide a termination package to Mr. Kwong as follows: (i) a cash payment equating to any outstanding Monthly Salary, Vacation pay and annual performance Bonus and STIP Bonus entitlements (if any and calculated pro rata up to the date of termination) earned by Mr. Kwong to the date of termination (collectively, the "Outstanding Amounts"); (ii) a cash payment equal to six months' of Monthly Salary for each year of employment commencing on December 4, 2024 and ending on the date of termination, up to a total maximum of 18 months (the "Severance Period") of Monthly Salary (the "Termination Amount"), with the Termination Amount being payable monthly over the Severance Period; (iii) confirmation that all of Mr. Kwong's then Benefits coverage would be extended for a period ending 12 months from the date of termination (the "Benefits Extension"); and (iv) subject to the applicable provisions of the Kwong Agreement and the Company's then Stock Incentive Plan, Mr. Kwong shall be entitled to then exercise any unexercised and the fully vested portion of any stock options for a period of 12 months from the date of termination (the "Options Extension").

If the Company elects to terminate the Kwong Agreement without just cause (as defined therein), or if Mr. Kwong terminates the Kwong Agreement for good reason as a result of a change of control (each as also defined therein), and provided that Mr. Kwong is in compliance with the relevant terms and conditions of the same, the Company shall be obligated to provide a termination package to Mr. Kwong as follows: (i) a cash payment equal to all Outstanding Amounts to the date of termination; (ii) a cash payment equal to the Termination Amount to the date of termination during the Severance Period; (iii) confirmation of the Benefits Extension; and (iv) subject to the applicable provisions of the Kwong Agreement and the Company's then Stock Incentive Plan, confirmation of the Options Extension.

If Mr. Kwong elects to terminate the Kwong Agreement, except for good reason, and provided that Mr. Kwong is in compliance with the relevant terms and conditions of the Kwong Agreement, or if the Company elects to termination the Kwong Agreement for just cause, then the Company shall only be obligated to provide Mr. Kwong a cash payment equal to all Outstanding Amounts to the date of termination.

The Kwong Agreement will be deemed terminated on the 30<sup>th</sup> calendar day following the death or disability of Mr. Kwong, in which case the Company shall be obligated to provide a termination package to Mr. Kwong, or Mr. Kwong's estate as the case may be, as follows, provided that Mr. Kwong is or was in compliance with the relevant terms and conditions of the Kwong Agreement: (i) a cash payment equal to all Outstanding Amounts to the date of termination; (ii) if disabled only, confirmation of the Benefits Extension; and (iii) subject to the applicable provisions of the Kwong Agreement and the Company's Stock Incentive Plan, Mr. Kwong, or Mr. Kwong's estate as the case may be, confirmation of the Options Extension.

<u>Employment Agreement with Chief Financial Officer</u>

On July 16, 2025, our Board of Directors also approved the entering into of a new executive employment services agreement with Baljinder (Bal) Bhullar ("Ms. Bhullar"), our current Chief Financial Officer ("CFO") and a director, with an initial term commencing on July 16, 2025 and expiring on July 16, 2028 (collectively, the "Bhullar Agreement"). The Bhullar Agreement supersedes the Company's prior Executive Employment Agreement, dated January 12, 2024, as between Damon Motors Inc. and Ms. Bhullar.

The Bhullar Agreement Term is subject to automatic renewal on a 90-day to 90-day renewal basis unless either the Company or Ms. Bhullar provides written notice not to renew the Kwong Agreement no later than 90 days prior to the end of the then current or renewal Term.

Pursuant to the terms and provisions of the Kwong Agreement: (i) Ms. Bhullar provides various employment services to the Company which are inclusive of her duties and responsibilities commensurate with her position as our CFO; and (ii) Ms. Bhullar is entitled to: (a) a gross monthly salary of CAD$37,035.75 (the "Monthly Salary"); (b) a yearly cash bonus (each, a "Bonus") of up to 100% of her then aggregate annual Monthly Salary based upon certain performance goals to be determined from year to year; (c) a short-term incentive payment (each, a "STIP Bonus") from 0% to up to 100% of her then aggregate annual Monthly Salary based upon certain factors to be determined by the Board and the Company's Compensation Committee from time to time; (d) an initial vesting incentive stock option to purchase up to an aggregate of 750,000 common shares of the Company and vesting over a period of 18 months from the date of grant (which are to be awarded); (e) an initial vesting restricted stock unit award (the "RSU") to acquire up to an aggregate of 750,000 RSU common shares of the Company and vesting equally over a period of two years from the date of grant (which are to be awarded); (f) participation in any long-term incentive program introduced by the Company from time to time; (g) participation in all Company employee benefit and health insurance plans (each, a "Benefit") at the Company's expense; and (h) four weeks of accrued vacation per calendar year (the "Vacation").

If the Company elects to not renew the Bhullar Agreement, and provided that Ms. Bhullar is in compliance with the relevant terms and conditions of the Bhullar Agreement, the Company shall be obligated to provide a termination package to Ms. Bhullar as follows: (i) a cash payment equating to any outstanding Monthly Salary, Vacation pay and annual performance Bonus and STIP Bonus entitlements (if any and calculated pro rata up to the date of termination) earned by Ms. Bhullar to the date of termination (collectively, the "Outstanding Amounts"); (ii) a cash payment equal to six months' of Monthly Salary for each year of employment commencing on January 1, 2024 and ending on the date of termination, up to a total maximum of 18 months (the "Severance Period") of Monthly Salary (the "Termination Amount"), with the Termination Amount being payable monthly over the Severance Period; (iii) confirmation that all of Ms. Bhullar's then Benefits coverage would be extended for a period ending 12 months from the date of termination (the "Benefits Extension"); and (iv) subject to the applicable provisions of the Bhullar Agreement and the Company's then Stock Incentive Plan, Ms. Bhullar shall be entitled to then exercise any unexercised and the fully vested portion of any stock options for a period of 12 months from the date of termination (the "Options Extension").

If the Company elects to terminate the Bhullar Agreement without just cause (as defined therein), or if Ms. Bhullar terminates the Bhullar Agreement for good reason as a result of a change of control (each as also defined therein), and provided that Ms. Bhullar is in compliance with the relevant terms and conditions of the same, the Company shall be obligated to provide a termination package to Ms. Bhullar as follows: (i) a cash payment equal to all Outstanding Amounts to the date of termination; (ii) a cash payment equal to the Termination Amount to the date of termination during the Severance Period; (iii) confirmation of the Benefits Extension; and (iv) subject to the applicable provisions of the Kwong Agreement and the Company's then Stock Incentive Plan, confirmation of the Options Extension.

If Ms. Bhullar elects to terminate the Bhullar Agreement, except for good reason, and provided that Mr. Bhullar is in compliance with the relevant terms and conditions of the Bhullar Agreement, or if the Company elects to termination the Bhullar Agreement for just cause, then the Company shall only be obligated to provide Ms. Bhullar a cash payment equal to all Outstanding Amounts to the date of termination.

The Bhullar Agreement will be deemed terminated on the 30<sup>th</sup> calendar day following the death or disability of Ms. Bhullar, in which case the Company shall be obligated to provide a termination package to Ms. Bhullar, or Ms. Bhullar's estate as the case may be, as follows, provided that Ms. Bhullar is or was in compliance with the relevant terms and conditions of the Bhullar Agreement: (i) a cash payment equal to all Outstanding Amounts to the date of termination; (ii) if disabled only, confirmation of the Benefits Extension; and (iii) subject to the applicable provisions of the Bhullar Agreement and the Company's Stock Incentive Plan, Ms. Bhullar, or Ms. Bhullar's estate as the case may be, confirmation of the Options Extension.

<u>Employment Agreement with Former Chief Executive Officer and Chairman of Board</u>

On March 23, 2022, Damon Motors entered into an employment agreement with Jay Giraud (the "**Giraud Employment Agreement**") for the employment of Mr. Giraud as the CEO of Damon Motors. Under the Giraud Employment Agreement, Damon Motors agreed to pay Mr. Giraud an annual base salary of US$350,000 (CAD$450,000) and a bonus in the range of $195,000 to $450,000, subject to the approval of the Board of Directors of Damon Motors. Pursuant to an employment side letter agreement dated October 17, 2024, Mr. Giraud was entitled to receive a $1 million listing bonus subject to the continued service with the Company for a period of 375 days following the date of public listing.

Mr. Giraud may terminate the Giraud Employment Agreement and Mr. Giraud's employment with Damon Motors at any time by providing Damon Motors with eight weeks' prior written working notice. Damon Motors may waive all or any part of the notice given by Mr. Giraud and direct Mr. Giraud not to report for work for any part of the notice period. In these circumstances, Mr. Giraud would then be paid all outstanding wages (including accrued but unpaid vacation pay) owing up to and including the effective resignation date. In no event will Damon Motors be required to pay Mr. Giraud more than twelve weeks' pay (plus accrued but unused vacation pay) based on Mr. Giraud's base salary at the time of resignation.

Damon Motors may terminate the Giraud Employment Agreement and the Mr. Giraud's employment at any time, without cause, upon Damon Motors providing Mr. Giraud with notice of termination or pay in lieu of notice (which shall be calculated based exclusively on Mr. Giraud's base salary at the time of termination), or some combination of the two, equal to: (i) three months' notice during his/her first year of service; plus (ii) an additional four weeks' notice for every completed year of service thereafter, subject to an overall maximum entitlement of 42 weeks (the "**Notice Period**").

Damon Motors will continue to pay the premiums required to maintain Mr. Giraud's participation in whatever extended health and/or dental group benefit plans Mr. Giraud is covered by at the time Mr. Giraud receives the notice of termination, until the earlier of the end of the applicable Notice Period or the date on which Mr. Giraud becomes eligible to participate in similar benefits through alternate or self-employment, whichever occurs first and provided that in no event will Mr. Giraud's benefit coverage be terminated prior to the expiration of the applicable statutory notice period. All other benefits or benefit coverage in place at the time shall be discontinued at the end the applicable statutory notice period.

Damon Motors may terminate the Giraud Employment Agreement and Mr. Giraud's employment without notice of termination or pay in lieu of notice at any time for Cause. For the purposes of the Giraud Employment Agreement, the term "Cause" includes: (a) the existence of cause for termination of employment at common law, including situations involving fraud, dishonesty, illegality, breach of statute or regulation, conflict of interest, gross negligence in the performance of Mr. Giraud's duties, or gross incompetence; (b) any material breach of the provisions of this Agreement; (c) willful disobedience of a reasonable direction from Damon Motors; (d) neglect of duty; (e) misconduct that undermines Damon Motors's confidence in Mr. Giraud's ability to effectively carry out the duties and responsibilities of his/her position; or (f) any material violation of Damon Motors's policies and procedures, as determined by Damon Motors in its sole and absolute discretion. In the event of a termination for Cause, Mr. Giraud will receive payment of any salary and vacation pay earned up to and including the date of termination. All other entitlements that Mr. Giraud may have as of the date of termination will be automatically extinguished, except for such minimum mandated entitlements, if any, as may be required by the Employment Standards Act (British Columbia).

Upon termination of employment for any reason, Mr. Giraud will cease to be and shall immediately resign as an officer or director of Damon Motors.

This provision regarding termination of employment will apply regardless of any changes to the terms and conditions of Mr. Giraud's employment subsequent to Mr. Giraud's signing of the Giraud Employment Agreement including, but not limited to, promotions and transfers, unless the parties expressly agree otherwise in writing.

There is a non-solicit and other post-employment restrictions present in the Giraud Employment Agreement.

There are no provisions with respect to change of control in the Giraud Employment Agreement.

<u>Employment Agreement with Former Chief Technology Officer</u>

On July 12, 2021, Damon Motors entered into an employment agreement with Derek Dorresteyn (the "**Dorresteyn Employment Agreement**") for the provision of CTO services. Under the Dorresteyn Employment Agreement, Damon Motors agreed to pay Mr. Dorresteyn an annual base salary of US$300,000 (CAD$390,000) and a bonus subject to and conditioned upon the terms and conditions of the applicable plan, as well as the Mr. Dorresteyn's continued employment by Damon Motors in good standing through the bonus payment date and neither party having delivered notice of an intent to terminate. Mr. Dorresteyn's employment through the bonus payment date as permitted by applicable law. Pursuant to an employment side letter agreement dated October 17, 2024, Mr. Dorresteyn is entitled to receive a $1 million bonus subject to the continued service with the Company for a period of 375 days following the date of public listing.

Upon Mr. Dorresteyn's termination for any reason, Mr. Dorresteyn will be entitled to: (i) all earned but unpaid base salary through Mr. Dorresteyn's separation date; (ii) any unpaid or unreimbursed business expenses incurred; (iii) any accrued but unused vacation through the separation date; and (iv) any benefits provided under Damon Motors's employee benefit plans, if any, following a termination of employment, in accordance with the terms contained in said plans (the "**Accrued Obligations**"). The Accrued Obligations will be payable to Mr. Dorresteyn as required by applicable law.

Mr. Dorresteyn may terminate the Dorresteyn Employment Agreement and Mr. Dorresteyn's employment with Damon Motors at any time by providing Damon Motors with 12 weeks' prior written notice. Damon Motors may waive all or any part of the notice period given by Mr. Dorresteyn and direct Mr. Dorresteyn not to report for work for any part of the notice period. In these circumstances, where Damon Motors elects to shorten the notice period, Mr. Dorresteyn would then be paid all Accrued Obligations owing up to and including the separation date.

Damon Motors may terminate the Dorresteyn Employment Agreement and Mr. Dorresteyn's employment at any time, without Cause. If Mr. Dorresteyn's employment is terminated by Damon Motors without Cause, in addition to the Accrued Obligations, Mr. Dorresteyn will be entitled to receive the Severance Benefits (defined below), subject to and contingent upon Mr. Dorresteyn executing a general release of claims satisfactory to Damon Motors, which must be executed and effective (taking into account any applicable revocation period) on or before the sixtieth (60th) day following the separation date (the "**Release Requirements**").

Damon Motors will pay Mr. Dorresteyn any Severance Benefits, if payable, in a lump sum on the 60th day following the Separation Date, provided the Release Requirements have been satisfied. If the release has not been executed or is not effective (taking into account any applicable revocation period) by the 60th day following the Separation Date, Mr. Dorresteyn will not be entitled to any (and shall forfeit all) payments (other than the Accrued Obligations). For the avoidance of doubt, if Mr. Dorresteyn's termination occurs other than by Damon Motors without Cause, Mr. Dorresteyn will not be entitled to Severance Benefits. Other than as expressly provided herein, Mr. Dorresteyn shall not be entitled to receive any payments or benefits under the Dorresteyn Employment Agreement for periods after Mr. Dorresteyn's Separation Date, and Damon Motors will have no obligation to make any additional payments or provide any other benefits for periods after the Separation Date (except as may otherwise be required under the applicable law).

"Severance Benefits" means an amount equal to (i) three months of Mr. Dorresteyn's base salary on the Separation Date; plus, if the Separation Date occurs after the first anniversary of the start date (ii) an additional four weeks of base salary for every full completed year of service thereafter, subject to an overall maximum entitlement of forty-two weeks.

Damon Motors may terminate the Dorresteyn Employment Agreement and his employment immediately at any time for Cause. For the purposes of the Dorresteyn Employment Agreement, the term "Cause" includes: a) the existence of cause for termination of employment at common law, including situations involving fraud, dishonesty, illegality, breach of statute or regulation, conflict of interest, gross negligence in the performance of Mr. Dorresteyn's duties, or gross incompetence; b) any material breach of the provisions of the Dorresteyn Employment Agreement; c) willful disobedience of a reasonable direction from Damon Motors; d) neglect of duty; e) misconduct that undermines Damon Motors's confidence in Mr. Dorresteyn's ability to effectively carry out the duties and responsibilities of his/her position; f) material unauthorized use or disclosure of any Confidential Information of Damon Motors or any other party to whom they owe an obligation of nondisclosure as a result of their relationship with Damon Motors; g) Mr. Dorresteyn indictment, conviction, admission or plea of nolo contendere to any felony, or to any other crime that involves theft, fraud or moral turpitude; or h) any material violation of Damon Motors's policies and procedures, as determined by Damon Motors in its sole and absolute discretion. In the event of a termination for Cause, Mr. Dorresteyn will receive payment of the Accrued Obligations.

Mr. Dorresteyn's employment with Damon Motors may be terminated immediately due to Mr. Dorresteyn's death or Disability. In the event of a termination due to Executive's death or Disability, Mr. Dorresteyn will receive payment of the Accrued Obligations. "Disability" will have the same meaning as such phrase is given under the long term disability plan sponsored by Damon Motors as may be offered from time to time or, in the absence of such policy, if Mr. Dorresteyn becomes physically or mentally incapacitated or impaired and is therefore unable for a period of twelve (12) consecutive weeks in any six (6)-consecutive month period, or such longer period as may be required by applicable law, to perform Mr. Dorresteyn's duties. Any question as to the existence of the disability of Mr. Dorresteyn shall be determined in writing by a qualified independent physician selected by Damon Motors.

Upon termination of employment for any reason, Mr. Dorresteyn will cease to be and shall immediately resign as an officer or director of Damon Motors, if applicable.

There is a non-solicit and other post-employment restrictions present in the Dorresteyn Employment Agreement. There are no provisions with respect to change of control in the Dorresteyn Employment Agreement.

<u>Employment Agreement with Former Chief Marketing Officer</u>

On July 11, 2022, Damon Motors entered into an employment agreement with Amber Spencer. Ms. Spencer served as the Chief Marketing Officer of Damon Motors (the "**Spencer Employment Agreement**"). Ms. Spencer is entitled to an annual salary of CAD$250,000. Ms. Spencer is entitled to participate in the company bonus plan for senior executives according to its terms and conditions and any other incentive plans or programs established for executives in accordance with the applicable plan or program, and, subject to board approval, may be eligible to participate in the equity incentive plan of Damon Motors. Ms. Spencer may terminate her employment agreement by providing 8 weeks' prior written working notice. In these circumstances, Ms. Spencer would then be paid all outstanding wages (including accrued but unpaid vacation pay) owing up to and including the effective resignation date. Damon Motors may terminate the employment agreement at any time, without cause, upon notice of termination or pay in lieu of notice (which shall be calculated based exclusively on the executive's base salary at the time of termination), or some combination of the two, equal to (i) three months' notice during his/her first year of service; plus (ii) an additional four weeks' notice for every completed year of service thereafter, subject to an overall maximum entitlement of 42 weeks. Damon Motors may terminate Ms. Spencer's employment agreement without notice of termination or pay in lieu of notice at any time for cause. Ms. Spencer's employment does not have any payment in connection with a change of control of Damon Motors.

**Director Compensation**

Subsequent to the closing of the Business Combination, the Board and the Compensation Committee approved the payment of the following compensation to its non-executive directors:

● US$60,000 annual base retainer per director;

● US$25,000 additional annual retainer payable to the director serving as lead director;

● US$20,000 additional annual retainer payable to each director serving as chair of a committee of the Board

**Consulting Agreement**

The following summarizes the terms of the consulting agreements the Company has entered into with its director Melanie Figueroa.

<u>Melanie Figueroa Consulting Agreement</u>

Pursuant to the terms of a consulting agreement, dated September 25, 2024 (the "**Figueroa Consulting Agreement**"), the Company agreed to pay Ms. Figueroa, a fee of US$15,000 per month for services rendered to the Company since April 1, 2024 until the end of the month of the closing of the Business Combination. In connection with the terms of the Figueroa Consulting Agreement, Ms. Figueroa will advise on public company reporting and compliance matters, business development, growth strategies and other operational matters as requested. As compensation under the Figueroa Consulting Agreement, Ms. Figueroa is entitled to a fee of $175,000 upon closing the Business Combination and her monthly fee will increase to $29,167 per month beginning on the first of each month following the closing of the Business Combination through the remainder of the term of the agreement.

Unless otherwise terminated earlier pursuant to the Figueroa Consulting Agreement, the agreement will continue for a period of six months following the closing of the Business Combination which may be extended for additional terms, upon mutual consent. The Company has the right to terminate the Figueroa Consulting Agreement with 30 days' notice; however, if it is terminated by the Company prior to the Figueroa Guaranteed Period for any reason other than the gross negligence, recklessness or willful misconduct of Ms. Figueroa, the monthly fee will continue to be paid for the remainder of the Figueroa Guaranteed Period. Ms. Figueroa has the right to terminate the Figueroa Consulting Agreement with 30 days' notice for specified reasons, including the Company's failure to make timely payments, gross negligence, recklessness, willful misconduct, or the filing of bankruptcy by the Company. In such cases, the monthly fee for the remainder of the Figueroa Guaranteed Period will continue to be paid.

**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS**

In addition to the compensation arrangements with directors and executive officers described under "Executive and Director Compensation" and "Management" in this Offering Circular, the following is a description of each transaction since our incorporation, and each currently proposed transaction in which:

● we have been or are to be a participant;

● the amount involved exceeds or will exceed the lesser of $120,000 and 1% of the average of the Company's total assets at year-end for the last two completed fiscal years; and

● any of our directors, executive officers or beneficial holders of more than 5% of our capital stock, or any immediate family member of, or person sharing the household with, any of these individuals (other than tenants or employees), had or will have a direct or indirect material interest.

The Company has policies and procedures designed to minimize potential conflicts of interest arising from any dealings it may have with its affiliates and to provide appropriate procedures for the disclosure of any real or potential conflicts of interest that may exist from time to time. Specifically, pursuant to its audit committee charter, the audit committee has the responsibility to review related party transactions.

**Certain Relationships and Related Party Transactions**

**Agreements Entered into by Grafiti Limited or Grafiti Holdings in connection with the SAVES Business**

Grafiti Limited is a primary distributor in the UK and Western European region of the SAVES products. Historically, Grafiti UK relied on advances from the Parent, as its parent to satisfy expenses. The expenses incurred that were settled by the Parent consisted of salaries and benefits to certain employees of the Parent that provided services for the company. In addition, Grafiti Limited recorded cost of sales for the purchase of the SAVES software from the Parent at market value based on the price that the Parent would charge third parties for the purchase of its software with industry consistent margins.

In connection with the Solutions Divestiture, the Parent contributed the License, along with other assets and businesses, to Grafiti LLC, then a wholly-owned subsidiary of the Parent. As reported in the current report on Form 8-K filed by the Parent on February 23, 2024, the Parent sold 100% of the equity interest in Grafiti LLC to an entity controlled by Nadir Ali, our former Chief Executive Officer and sole director prior to the closing of the Business Combination, who also owned more than 5% of Grafiti Holding common shares immediately prior to the closing of the Business Combination. The Company has entered into a Distributor Agreement and an Administrative Support Service Agreement with Grafiti LLC. See the description of the terms of these agreements in "Business - License, Distribution and Administrative Service Arrangements with Grafiti LLC" herein.

**Agreement Entered into by Grafiti Holding in connection with the Spinoff**

*Separation and Distribution Agreement*

On October 23, 2023, the Parent and the Company entered into a Separation and Distribution Agreement, pursuant to which all of the outstanding shares of Grafiti Limited, were transferred to the Company, such that on December 26, 2023, Grafiti Limited became a wholly-owned subsidiary of Grafiti (the "**reorganization**"). Following the reorganization, and in connection with the spin-off of the Company from Parent, on December 27, 2023 (the "**record date**"), all of the outstanding common shares of the Company held by the Parent (the "**Trust Shares**") were transferred to the Grafiti Holding Inc. Liquidating Trust (the "Trust"), to be held for the benefit of holders of the Parent's common stock, preferred stock and those outstanding warrants that are contractually entitled to participate in the distribution of the Trust Shares, on a pro rata basis as of the record date (collectively, the "**participating Parent securityholders**"). On November 12, 2024 (the "**distribution date**"), the Trust Shares were delivered to the participating Parent securityholders, on a pro rata basis at a ratio of 1 Trust Share for every 50 shares of common stock the Parent held by the participating Parent securityholders, with all fractional shares being rounded up, resulting in the distribution of an aggregate of 3,536,746 Trust Shares to participating Parent securityholders.

*Liquidating Trust Agreement*

On December 27, 2023, Grafiti Holding, the Parent and the initial trustee of the trust have entered into a Liquidating Trust Agreement (the "**Liquidating Trust Agreement**"), pursuant to which the Parent distributed the Grafiti Holding common shares owned by the Parent to the trust as of the record date and the trust will deliver the Grafiti Holding common shares to the beneficiaries promptly following the effective date. If the distribution is not consummated prior to the second anniversary of the date of the Liquidating Trust Agreement, the trustee(s) of the trust will be empowered to liquidate the Grafiti Holding common shares held by the trust and distribute the proceeds thereof to the participating securityholders as beneficiaries.

**Agreements Entered into by Grafiti Holding in connection with Consulting Services**

Prior to the closing of the Business Combination, the Company paid Melanie Figueroa US$15,000 a month for advisory services with respect to her knowledge and expertise related to Company's public company reporting and compliance matters and corporate business development and growth strategies. Ms. Figueroa is the trustee of the Grafiti Holding Inc. Liquidating Trust and also individually owned more than 5% of the outstanding common shares immediately prior to the closing of the Business Combination. Grafiti Holding has entered into a consulting agreement on September 25, 2024 with Ms. Figueroa. See the description of the terms of the agreement in "Management – Consulting Agreement – Melanie Figueroa Consulting Agreement."

Additionally, Grafiti Holding has entered into a consulting agreement on September 25, 2024 with Ms. Wendy Loundermon, who owned more than 5% of the outstanding common shares immediately prior to the closing of the Business Combination. Pursuant to this agreement, Grafiti Holding has agreed to pay a fee of $10,000 per month for services rendered to the Company since April 1, 2024 until the closing of the Business Combination pursuant to which Ms. Loundermon is providing advisory services in connection with the transition of the Company's financial reporting function to ensure continuity of business operations following the Closing.

As compensation under the Consulting Agreement, Grafiti Holding will pay Ms. Loundermon a fee of $150,000 upon closing the Business Combination and her monthly fee will increase to $25,000 per month beginning on the first of each month following the closing of the Business Combination through the remainder of the term of the agreement.

Unless otherwise terminated earlier pursuant to the Consulting Agreement, the agreement will continue for a period of six months following the closing of the Business Combination. Grafiti Holding will have the right to terminate the Consulting Agreement with 30 days' notice; however, if it is terminated by Grafiti Holding prior to the six month anniversary of the closing of the Business Combination (the "**Loundermon Guaranteed Period**") for any reason other than the gross negligence, recklessness or willful misconduct of Ms. Loundermon, the monthly fee will continue to be paid for the remainder of the Loundermon Guaranteed Period. Mrs. Loundermon will have the right to terminate the Consulting Agreement with 30 days' notice for specified reasons, including Grafiti Holding's failure to make timely payments, gross negligence, recklessness, willful misconduct, or the filing of bankruptcy by Grafiti Holding. In such cases, the monthly fee for the remainder of the Loundermon Guaranteed Period will continue to be paid.

**Agreements Entered by Damon with Former CEO and Chairman of Board**

Upon the closing of the Business Combination, Damon Jay Giraud was appointed as CEO, President and Executive Chairman of the Board. Pursuant to the Plan of Arrangement and the BCBCA, as contemplated in the Business Combination Agreement, Mr. Giraud received 1,391,181 multiple voting shares of the Company (the "**Multiple Voting Shares**"), which were the only multiple voting shares issued by the Company. On December 4, 2024, Mr. Giraud resigned from all positions as a director and officer of the Company and its subsidiaries. In accordance with the terms of the Founder Agreement between Mr. Giraud and the Company, all 1,391,181 Multiple Voting Shares held by Mr. Giraud and his controlled entity were converted into common shares on a one-for-one basis. Summarized below are the Coattail Agreement and the Founder Agreement Damon entered into with Mr. Giraud upon the Closing.

<u>Coattail Agreement and Founder Agreement</u>

In connection with the issuance of 1,391,181 Multiple Voting Shares to Mr. Giraud on the closing of the Business Combination, the Company and Mr. Giraud entered into a coattail agreement among Mr. Giraud, the Company and a trustee (the "**Coattail Agreement**"), and a founder agreement between Mr. Giraud and the Company (the "**Founder Agreement**").

Under the Coattail Agreement, any sale of Multiple Voting Shares (other than a transfer to a pledgee as security) by a holder of Multiple Voting Shares party to the Coattail Agreement will be conditional upon the transferee becoming a party to the Coattail Agreement, to the extent such transferred Multiple Voting Shares are not automatically converted into common shares in accordance with the Articles.

The Coattail Agreement contains provisions for authorizing action by the trustee to enforce the rights under the Coattail Agreement on behalf of the holders of the common shares. The obligation of the trustee to take such action will be conditional on the combined company or holders of the common shares providing such funds and indemnity as the trustee may reasonably require. No holder of common shares will have the right, other than through the trustee, to institute any action or proceeding or to exercise any other remedy to enforce any rights arising under the Coattail Agreement unless the trustee fails to act on a request authorized by holders of not less than 10% of the outstanding common shares and reasonable funds and indemnity have been provided to the trustee.

Other than in respect of non-material amendments and waivers that do not adversely affect the interests of holders of common shares, the Coattail Agreement provides that, among other things, it may not be amended, and no provision thereof may be waived, unless, prior to giving effect to such amendment or waiver, the following have been obtained: (a) the consent of any applicable securities regulatory authority in Canada or the United States; and (b) the approval of at least two-thirds of the votes cast by holders of common shares represented at a meeting duly called for the purpose of considering such amendment or waiver, excluding votes attached to common shares held by the holder of Multiple Voting Shares or their affiliates and related parties and any persons who have an agreement to purchase Multiple Voting Shares on terms which would constitute a sale or disposition for purposes of the Coattail Agreement, other than as permitted thereby. Non-material amendments and waivers that do not adversely affect the interests of holders of common shares shall be subject to the approval of any applicable exchange on which the common shares trade but shall not require approval of holders of common shares.

The Coattail Agreement provides that, in the event that a lender transfers or takes beneficial ownership of Multiple Voting Shares pursuant to an enforcement by a lender of a pledge of, or other security interest in, such Multiple Voting Shares, the applicable Multiple Voting Shares will automatically be converted into common shares pursuant to the Articles such that, as a result of such enforcement, the applicable lender does not hold Multiple Voting Shares. Any

Multiple Voting Share held by a lender pursuant to a pledge or other grant of a security interest shall be deemed to continue to be held by Jay Giraud so long as the lender has not transferred or taken beneficial ownership of such Multiple Voting Share pursuant to an enforcement by the lender of a pledge of, or other security interest in, such Multiple Voting Shares. A lender will have no rights as a shareholder until the occurrence of an event of default under the loan agreement.

No provision of the Coattail Agreement will limit the rights of any holders of common shares under applicable law.

Under the Founder Agreement, Mr. Giraud shall not be entitled to transfer any of the Multiple Voting Shares to permitted transferees. Jay Giraud also agreed to convert his Multiple Voting Shares into common shares upon:

● The shipment of 1,000 motorcycles to customers by the combined company; and

● Jay Giraud ceasing to be an executive officer of the Company due to his voluntary resignation as both a director and an officer of the combined company, or his termination as an executive officer for cause (which termination has been confirmed by a court of competent jurisdiction, or in respect of which a claim is not brought within 90 days following such termination).

In addition, under the Founder Agreement, Mr. Giraud agreed that he will not vote or cause to be voted more than one-seventh of the number of Multiple Voting Shares that he owns, or over which he has voting control, in favor, against or withheld on a vote for the election or removal directors, except in the case of a vote for the election of directors proposed in any management information circular of the Company, in which case Mr. Giraud will be entitled to vote all Multiple Voting Shares held by him in favor of the slate of directors proposed in such management information circular.

Mr. Giraud resigned as an executive officer and director of the Company on December 4, 2024; accordingly, the Multiple Voting Shares that owned by him are deemed converted into an equivalent number of Common Shares as of such date.

<u>Lock-Up Agreement</u>

In connection with the execution of the Business Combination Agreement, Mr. Giraud executed a lock-up agreement to be subject to lock-up restrictions for the period from the closing of the Business Combination to 180 days after the closing, unless released earlier by the Company.

**Indemnification Agreements Entered by Damon with Directors and Officers**

The Company's Articles contain provisions limiting the liability of directors and provide that the Company will indemnify each of its directors and officers to the fullest extent permitted under law. In addition, we have entered into an indemnification agreement with each of our directors, which requires us to indemnify them.

**PRINCIPAL SHAREHOLDERS**

The following table sets forth the beneficial ownership of our Common Shares as of the date of this filing by:

● each person who is known to be the beneficial owner of more than 5% of the outstanding Common Shares;

● each of our current named executive officers and directors; and

● all our current executive officers and directors as a group.

Beneficial ownership is determined according to the rules of the SEC, which generally provide that a person has beneficial ownership of a security if he, she or it possesses sole or shared voting or investment power over that security, including options and warrants that are currently exercisable or exercisable within 60 days after that date through the exercise of any option or warrant. In computing the number of Common Shares beneficially owned by a person and the percentage ownership of that person, our Common Shares subject to options or warrants (as set forth above) held by that person that are currently exercisable, or will become exercisable within 60 days thereafter, are deemed outstanding for such person, while such shares are not deemed outstanding for purposes of computing percentage ownership of any other person. Each person named in the table has sole voting and investment power with respect to all of the shares shown as beneficially owned by such person, except as otherwise indicated in the table or footnotes below.

Unless otherwise indicated, we believe that all persons named in the table below have sole voting and investment power with respect to the voting securities beneficially owned by them. To our knowledge, none of the Common Shares beneficially owned by any executive officer or director have been pledged as security. Unless otherwise noted, the address of each beneficial owner is c/o Damon Inc., 4601 Canada Way, Suite #402, Burnaby, British Columbia, V5G 4X3.

As of July 21, 2025, there are the date of this filing, there are 19,603,815 Common Shares issued and outstanding.

---

| | | |
|:---|:---|:---|
| **Name of Beneficial Owner** | **Amount and nature of beneficial owner** | **%<sup>(1)</sup>** |
| **5% or More Shareholders** |  |  |
| Streeterville Capital LLC<sup>(2)</sup> | 1958421 | 9.99% |
| Maxim Partners LLC | 985876 | 5.03% |
| **Directors and Executive Officers** |  |  |
| Dominique Kwong | 5991 | \* |
| Baljinder Bhullar |  |  |
| Karan Sodhi |  |  |
| Shahsi Tripathi<sup>(3)</sup> | 529 | \* |
| Melanie Figueroa<sup>(4)</sup> | 2538 | \* |
| *All directors and executive officers as a group (5 individuals)* | 9058 | \* |

---

\* Indicates beneficial ownership of less than 1% of the outstanding common shares.

(1) Based on 19,603,815 shares outstanding as
 of the date of this filing.

(2) Streeterville has rights under pre-paid purchases pursuant to the Streeterville
Securities Purchase Agreement dated December 20, 2024 to own an aggregate number of the Company's Common Shares which, except for
a contractual cap on the amount of outstanding shares that Streeterville may own, would exceed such a cap. Additionally, Streeterville
has rights to convert the Streeterville June 2024 Note to up to approximately 51,602,270 Common Shares, subject to a contractual cap on
the amount of outstanding shares Streeterville may own. Streeterville's current ownership cap under these agreements is 9.99%. Thus,
the number of Common Shares beneficially owned by Streeterville as of the date of this filing was 1,958,421 shares, which is 9.99% of
the 19,603,815 shares outstanding as of the date of this filing. John M Fife has voting and dispositive power over securities held by
Streeterville. The business address of Streeterville is 297 Auto Mall Drive #4, St. George, Utah 84770.

(3) According to the Form 4 filed with the SEC
 on November 15, 2024, this represents (i) 234 common shares held by Nurture Growth Fund,
 LP, (ii) 256 common shares of Damon underlying private warrants, which were distributed to
 Nurture Growth Fund, LP in connection with the Closing of the Business Combination Agreement,
 (iii) 19 common shares held by Nurture Group Ventures LLC, and (iv) 20 common shares of Damon
 underlying private warrants, which were distributed to Nurture Group ventures LLC in connection
 with the Closing of the Business Combination Agreement. Mr. Tripathi is the managing partner/member
 of Nurture Growth Fund, LP and Nurture Group Ventures LLC and may be deemed to control and
 have voting and investment power over these securities.

(4) Includes 506 common shares that are held by the
 Trust, resulting from the rounding down of fractional shares pursuant to the Distribution.
 Ms. Figueroa is the sole trustee of the Trust and maintains limited voting and dispositive
 power over the shares held by the Trust pursuant to the Liquidating Trust Agreement dated
 December 27, 2023, and may be deemed to control and have voting and investment power over
 these shares.

The following summary of the rights of our securities is not complete and is subject to and qualified and should be read together with our articles, as amended and notice of articles, as amended (collectively, our "**Articles**"), copies of which have been filed previously with the SEC. For more information on how you can obtain copies of our Articles, see the section titled "Where You Can Find More Information."

**DESCRIPTION OF SECURITIES**

**Common Shares**

Our Articles authorizes (i) an unlimited number of common shares, without par value, which are also referred to herein as "Subordinate Voting Shares," and (ii) an unlimited number of Multiple Voting Shares, without par value. On December 4, 2024, all 1,391,181 outstanding Multiple Voting Shares held by the Company's former Chief Executive Officer and director, Jay Giraud, and his wholly-owned company, were automatically converted into 1,391,181 Common Shares pursuant to the terms of his Founder Agreement with the Company. After giving effect to the conversion and as of July 21, 2025, a total of 19,603,815 Common Shares are outstanding, and no Multiple Voting Shares remain outstanding.

**Subordinate Voting Shares and Multiple Voting Shares**

Except as described below, the Subordinate Voting Shares and Multiple Voting Shares will have the same rights, will be equal in all respects and will be treated by the combined company as if they were one class of shares. The Articles provide that following the listing of the Company's common shares on Nasdaq or other similar recognized national securities exchange in Canada or the United States, the Company may not issue any new Multiple Voting Shares from its treasury.

**Ranking**

The Subordinate Voting Shares and Multiple Voting Shares will rank *pari passu* with respect to the payment of dividends, return of capital and distribution of assets in the event of the Company's liquidation, dissolution or winding up.

**Dividend Rights**

Holders of Subordinate Voting Shares and Multiple Voting Shares will be entitled to receive dividends on a *pari passu* basis out of the combined company's assets legally available for the payment of dividends at such times and in such amount and form as the Board of Directors may from time to time determine. In the event of the payment of a dividend in the form of shares, holders of Subordinate Voting Shares will receive Subordinate Voting Shares, and holders of Multiple Voting Shares will receive Multiple Voting Shares, unless otherwise determined by the Board of Directors.

**Voting Rights**

Holders of Subordinate Voting Shares will be entitled to one vote per Subordinate Voting Share, and holders of Multiple Voting Shares will be entitled to seven votes per Multiple Voting Share, on all matters upon which shareholders are entitled to vote.

**Conversion**

The Subordinate Voting Shares will not convertible into any other class of shares. In addition, the Multiple Voting Shares shall convert to Subordinate Voting Shares as follows:

● each outstanding Multiple Voting Share may at any time, at the option of the holder, be converted into one Subordinate Voting Share;

● on the first business day following the fifth annual meeting of shareholders of the combined company following the Subordinate Voting Shares being listed and posted for trading on a U.S. national securities exchange such as Nasdaq, the Multiple Voting Shares shall automatically convert to Subordinate Voting Shares; and

● if Jay Giraud or his permitted transferees no longer beneficially owns, directly or indirectly and in the aggregate, at least 2% of the issued and outstanding Subordinate Voting Shares and Multiple Voting Shares on a non-diluted basis (on an as converted basis), the Multiple Voting Shares shall automatically convert to Subordinate Voting Shares.

In addition, pursuant to the Founder Agreement with Jay Giraud, Jay Giraud agreed to convert his Multiple Voting Shares into Subordinate Voting Share upon:

● the shipment of 1,000 motorcycles to customers by the combined company; and

● Jay Giraud ceasing to be an executive officer of the Company due to his voluntary resignation as both a director and an officer of the combined company, or his termination as an executive officer for cause (which termination has been confirmed by a court of competent jurisdiction, or in respect of which a claim is not brought within 90 days following such termination). Mr. Giraud resigned as an executive officer and director of the Company on December 4, 2024; accordingly, the Multiple Voting shares that were beneficially owned by him are deemed converted into an equivalent number of Common Shares as of such date.

**Meetings of Shareholders**

Holders of Subordinate Voting Shares and Multiple Voting Shares will be entitled to receive notice of any meeting of shareholders and may attend and vote at such meetings, except those meetings where only the holders of shares of another class or of a particular series are entitled to vote. A quorum for the transaction of business at a meeting of shareholders is present if at least two shareholders who, together, hold not less than 33 and 1/3% of the votes attaching to the issued and outstanding shares entitled to vote at the meeting are present in person or represented by proxy.

**Redemption Rights**

The Company has no redemption or purchase for cancellation rights.

**Liquidation Rights**

Upon a liquidation, dissolution or winding-up, whether voluntary or involuntary, of the Company, the holders of Subordinate Voting Shares and Multiple Voting Shares, without preference or distinction, will be entitled to receive ratably all of the Company's assets remaining after payment of all debts and other liabilities.

**Subdivision, Consolidation and Issuance of Rights**

No subdivision or consolidation of the Subordinate Voting Shares or Multiple Voting Shares may occur unless both classes of shares are concurrently subdivided or consolidated and in the same manner and proportion. No new rights to acquire additional shares or other securities or property of ours will be issued to holders of Subordinate Voting Shares or Multiple Voting Shares unless the same rights are concurrently issued to the holders of both classes of shares.

Additionally, pursuant to the BCBCA and our Articles, the Board of Directors by resolution of the directors has the authority to consolidate or subdivide our issued and outstanding Subordinate Voting Shares or Multiple Voting Shares without requiring shareholder approval.

**Certain Amendments**

In addition to any other voting right or power to which the holders of Subordinate Voting Shares shall be entitled by law or regulation or other provisions of the Articles from time to time in effect, but subject to the provisions of the Articles, holders of Subordinate Voting Shares shall be entitled to vote separately as a class, in addition to any other vote of shareholders that may be required, in respect of any alteration, repeal or amendment of the Articles which would adversely affect the rights or special rights of the holders of Subordinate Voting Shares or affect the holders of Subordinate Voting Shares and Multiple Voting Shares differently, on a per share basis.

Pursuant to the Articles, holders of Subordinate Voting Shares and Multiple Voting Shares will be treated equally and identically, except with respect to voting and conversion, on a per share basis, in certain change in control transactions that require approval of the shareholders under the BCBCA, unless different treatment of the shares of each such class is approved by a majority of the votes cast by the holders of the Subordinate Voting Shares and Multiple Voting Shares, each voting separately as a class.

**Forum Selection**

The Articles include a forum selection provision that provides that, unless the Company consents in writing to the selection of an alternative forum, the British Columbia Supreme Court and appellate Courts therefrom will be the sole and exclusive forum for (i) any derivative action or proceeding brought on the Company's behalf; (ii) any action or proceeding asserting a breach of fiduciary duty owed by any of the Company's directors, officers or other employees to the Company; (iii) any action or proceeding asserting a claim arising pursuant to any provision of BCBCA or the Articles; or (iv) any action or proceeding asserting a claim otherwise related to the "affairs" (as defined in the BCBCA) of the Company. The forum selection provision also provides that the Company's securityholders are deemed to have consented to personal jurisdiction in the Province of British Columbia and to service of process on their counsel in any foreign action initiated in violation of the Articles. To the fullest extent permitted by law, the forum selection provision applies to claims arising under U.S. federal securities laws. In addition, investors cannot waive compliance with U.S. federal securities laws and the rules and regulations thereunder.

**Advance Notice Provisions**

The Articles include certain advance notice provisions with respect to the election of directors (the "**Advance Notice Provisions**"). The Advance Notice Provisions are intended to: (i) facilitate orderly and efficient annual general meetings or, where the need arises, special meetings; (ii) ensure that all shareholders receive adequate notice of the board of directors nominations and sufficient information with respect to all nominees; and (iii) allow shareholders to register an informed vote. Only persons who are nominated by shareholders in accordance with the Advance Notice Provisions will be eligible for election as directors at any annual meeting of shareholders, or at any special meeting of shareholders if one of the purposes for which the special meeting was called was the election of directors.

Under the Advance Notice Provisions, a shareholder wishing to nominate a director would be required to provide the Company notice, in the prescribed form, within the prescribed time periods. These time periods include, (i) in the case of an annual meeting of shareholders (including annual and special meetings), not more than 40 days prior to the date of the annual meeting of shareholders; provided, that if the first public announcement of the date of the annual meeting of shareholders (the "**Notice Date**") is less than 50 days before the meeting date, notice must be given not later than the close of business on the 10<sup>th</sup> day following the Notice Date; and (ii) in the case of a special meeting (which is not also an annual meeting) of shareholders called for the purpose of electing directors (whether or not called for other purposes), not later than the close of business on the 15th day following the Notice Date.

**Transfer Agent and Registrar**

The transfer agent and registrar for our Common Shares is Odyssey Transfer & Trust Company.

**Trade Symbol and Market**

Our Common Shares trade on the over-the-counter market and are quoted on the OTCID Basic Market under the symbol "DMNIF", however, as a result of our recent reverse stock split effective on July 3, 2025, our current trading symbol is "DMNID" until August 1, 2025, when our symbol will revert to "DMNIF."

**SHARES ELIGIBLE FOR FUTURE SALE**

Immediately following the sale of the maximum amount of Common Shares in this Offering, we will have 319,603,815 Common Shares issued and outstanding. The Common Shares will be freely tradable under federal securities laws unless issued to our "affiliates" as such term is defined in Rule 405 of the Securities Act. If you participate in this Offering and purchase more than 10% of our Common Shares, you may be deemed an affiliate under the Securities Act and may be unable to freely transfer your Common Shares. We or our transfer agent will require you to provide a legal opinion and other information necessary to determine your affiliate status.

In addition, since we are a British Columbia corporation, we are subject to the jurisdiction of the British Columbia Securities Commission (the "**BCSC**"), and the first trade of the Common Shares by an investor in or from a jurisdiction of Canada is prohibited unless such Common Shares are qualified by a prospectus filed and duly receipted by the BCSC and any other Canadian securities administrator having jurisdiction with respect thereto. Accordingly, a non-Canadian investor will be required to provide an undertaking in the subscription agreement that the investor undertakes not to sell any Common Shares to a person in Canada, from a jurisdiction in Canada or through a market in Canada unless the resale transaction has been so qualified.

The Common Shares issued in this Offering to Canadian investors will be subject to the resale requirements under section 13 of Multilateral Instrument 51-105 – *Issuers Quoted in the U.S. Over-the-Counter Markets* ("**MI 51-105**"), and will bear a legend restriction notation, stating the following: "The holder of this security must not trade the security in or from a jurisdiction of Canada unless the conditions in section 13 of Multilateral Instrument 51-105 Issuer Quoted in the U.S. Over-the-Counter Markets are met." Please see below for the resale requirements under section titled "*MI 51-105*." Canadian purchasers under this Offering should consult with their own professional advisers with respect to restrictions on the transferability of the Common Shares offered hereunder.

Previously issued Common Shares that were not offered and sold in this Offering, as well as Common Shares subject to employee stock options, which have not been registered under the Securities Act, are or will be upon issuance, "restricted securities", as that term is defined in Rule 144 under the Securities Act. These restricted securities are eligible for public sale only if such public resale is registered under the Securities Act or if the resale qualifies for an exemption from registration under Rule 144 or Rule 701 under the Securities Act, which are summarized below.

**Rule 144**

In general, a person who has beneficially owned restricted shares for at least twelve months, or at least six months in the event we have been a reporting company under the Exchange Act for at least 90 days before the sale, would be entitled to sell such shares, provided that such person is not deemed to be an affiliate of ours at the time of sale or to have been an affiliate of ours at any time during the 90 days preceding the sale. A person who is an affiliate of ours at such time would be subject to additional restrictions, by which such person would be entitled to sell within any three-month period only a number of shares that does not exceed the greater of the following:

● 1% of the number of Common Shares then outstanding; or

● 1% of the average weekly trading volume of our Common Shares during the four calendar weeks preceding the filing by such person of a notice on Form 144 with respect to the sale;

provided that, in each case, we are subject to the periodic reporting requirements of the Exchange Act for at least 90 days before the sale. Rule 144 trades must also comply with the manner of sale, notice and other provisions of Rule 144, to the extent applicable.

**Rule 701**

In general, Rule 701 allows a stockholder who purchased Common Shares of our capital stock pursuant to a written compensatory plan or contract and who is not deemed to have been an affiliate of ours during the immediately preceding 90 days to sell those Common Shares in reliance upon Rule 144, but without being required to comply with the public information, holding period, volume limitation or notice provisions of Rule 144. All holders of Rule 701 Common Shares, however, are required to wait until 90 days after the date of this Offering Circular before selling Common Shares pursuant to Rule 701.

**MI 51-105**

We became an "OTC reporting issuer" under MI 51-105 by having issued a class of securities that has been assigned a symbol by the Financial Industry Regulatory Authority ("**FINRA**") for use on the OTCID market operated by the OTC Markets Group, Inc. and such securities are not listed or quoted on one or more of: (i) TSX Venture Exchange Inc.; (ii) TSX Inc.; (iii) Canadian Securities Exchange; (iv) Alpha Exchange Inc.; (v) The New York Stock Exchange LLC; (vi) NYSE American LLC; (vii) The Nasdaq Stock Market LLC; or (viii) Cboe Canada (formerly Aequitas NEO Exchange Inc.). Pursuant to section 13(1) of MI 51-105, a person must not trade a security of an OTC reporting issuer that the person acquired under an exemption from the prospectus requirement after the date FINRA issued the ticker-symbol unless the following conditions are satisfied:

&nbsp;&nbsp;&nbsp;&nbsp;(a) unless the security was acquired under
 a director or employee stock option, a 4-month period has passed from one of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the date the OTC reporting issuer distributed
 the security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the date a control person distributed the
 security;

&nbsp;&nbsp;&nbsp;&nbsp;(b) if the person trading the security is
 a control person of the OTC reporting issuer, the person has held the security for at least
 6 months;

&nbsp;&nbsp;&nbsp;&nbsp;(c) the number of securities the person proposes
 to trade, plus the number of securities of the OTC reporting issuer of the same class that
 the person has traded in the preceding 12-month period, does not exceed 5% of the OTC reporting
 issuer's outstanding securities of the same class;

&nbsp;&nbsp;&nbsp;&nbsp;(d) the person trades the security through
 an investment dealer registered in a jurisdiction of Canada;

&nbsp;&nbsp;&nbsp;&nbsp;(e) the investment dealer executes the trade
 through any of the over-the-counter markets in the United States of America;

&nbsp;&nbsp;&nbsp;&nbsp;(f) there has been no unusual effort made
 to prepare the market or create a demand for the security;

&nbsp;&nbsp;&nbsp;&nbsp;(g) no extraordinary commission or other consideration
 is paid to a person for the trade;

&nbsp;&nbsp;&nbsp;&nbsp;(h) if the person trading the security is
 an insider of the OTC reporting issuer, the person reasonably believes that the OTC reporting
 issuer is not in default of securities legislation; and

&nbsp;&nbsp;&nbsp;&nbsp;(i) the certificate representing the security
 bears a legend, or the ownership statement issued under a direct registration system or other
 electronic book entry system relating to the security bears a legend restriction notation,
 stating the following:

"*The holder of this security must not trade the security in or from a jurisdiction of Canada unless the conditions in section 13 of Multilateral Instrument 51-105 Issuer Quoted in the U.S. Over-the-Counter Markets are met*."

Section 13(2) of MI 51-105 provides that despite subsection (1), a person may trade a security of an OTC reporting issuer that the person acquired under an exemption from the prospectus requirement if the trade is in connection with one or more of the following:

&nbsp;&nbsp;&nbsp;&nbsp;(a) a take-over bid or an issuer bid in a
 jurisdiction of Canada;

&nbsp;&nbsp;&nbsp;&nbsp;(b) an amalgamation, merger, reorganization
 or arrangement that is under a statutory procedure or court order;

&nbsp;&nbsp;&nbsp;&nbsp;(c) a dissolution or winding-up of the issuer
 that is under a statutory procedure or court order.

**CERTAIN CANADIAN FEDERAL INCOME TAX CONSIDERATIONS<br> FOR NON-RESIDENTS OF CANADA**

The following is, as of the date hereof, a summary of the principal Canadian federal income tax considerations generally applicable under the *Income Tax Act* (Canada) and the regulations promulgated thereunder (the "**Tax Act**") to a holder who acquires, as beneficial owner, Common Shares pursuant to this Offering, and who, for purposes of the Tax Act and at all relevant times: (i) holds their Common Shares as capital property; (ii) deals at arm's length with, and is not affiliated with, us; (iii) is not, and is not deemed to be, resident in Canada; and (iv) does not use or hold and will not be deemed to use or hold, their Common Shares in the course of carrying on, or otherwise in connection with, a business carried on in Canada (a "**Non-Resident Holder**"). Generally, Common Shares will be considered to be capital property to a Non-Resident Holder provided the Non-Resident Holder does not hold the Common Shares in the course of carrying on a business of trading or dealing in securities and has not acquired them in one or more transactions considered to be an adventure or concern in the nature of trade. Special rules, which are not discussed in this summary, may apply to a Non-Resident Holder that is an insurer that carries on an insurance business in Canada and elsewhere or is an authorized foreign bank (as defined in the Tax Act). **All such Non-Resident Holders should seek advice from their own tax advisors**.

This summary is based upon the provisions of the Tax Act in force as of the date hereof, all specific proposals to amend the Tax Act that have been publicly announced by or on behalf of the Minister of Finance (Canada) prior to the date hereof (the "**Proposed Amendments**") and management's understanding of the current administrative policies and assessing practices of the Canada Revenue Agency (the "**CRA**") published in writing by it prior to the date hereof. This summary assumes the Proposed Amendments will be enacted in the form proposed. However, no assurance can be given that the Proposed Amendments will be enacted in their current form, or at all. This summary is not exhaustive of all possible Canadian federal income tax considerations and, except for the Proposed Amendments, does not take into account or anticipate any changes in the law or any changes in the CRA's administrative policies or practices, whether by legislative, governmental, or judicial action or decision, nor does it take into account or anticipate any other federal or any provincial, territorial or foreign tax considerations, which may differ significantly from those discussed herein.

**Non-Resident Holders should consult their own tax advisors with respect to an investment in Common Shares. This summary is of a general nature only and is not intended to be, nor should it be construed to be, legal or tax advice to any prospective purchaser or holder of Common Shares, and no representations with respect to the income tax consequences to any prospective purchaser or holder are made. Consequently, prospective purchasers or holders of Common Shares should consult their own tax advisors with respect to their particular circumstances.**

**Currency Conversion**

Generally, for purposes of the Tax Act, all amounts relating to the acquisition, holding, or disposition of Common Shares, including dividends, adjusted cost base, and proceeds of disposition, which are denominated in a currency other than the Canadian dollar, must be converted into Canadian dollars using the applicable rate of exchange quoted by the Bank of Canada on the date such amounts arose, or such other rate of exchange as is acceptable to the Minister of National Revenue (Canada).

**Disposition of Common Shares**

A Non-Resident Holder will generally not be subject to income tax under the Tax Act on a disposition or deemed disposition of a Common Share, unless the Common Share constitutes "taxable Canadian property" (as defined in the Tax Act) of the Non-Resident Holder at the time of disposition and the Non-Resident Holder is not entitled to relief under an applicable income tax treaty or convention.

Provided that our Common Shares are listed on a "designated stock exchange," as defined in the Tax Act, at the time of disposition, a Common Share will generally not constitute taxable Canadian property of a Non-Resident Holder at that time unless at any time during the 60-month period immediately preceding the disposition the following two conditions are satisfied concurrently: (i) (a) the Non-Resident Holder; (b) persons with whom the Non-Resident Holder did not deal at arm's length; (c) partnerships in which the Non-Resident Holder or a person described in (b) holds a membership interest directly or indirectly through one or more partnerships; or (d) any combination of the persons and partnerships described in (a) through (c), owned 25% or more of the issued shares of any class or series of our shares; and (ii) more than 50% of the fair market value of such shares was derived directly or indirectly from one or any combination of: real or immovable property situated in Canada, "Canadian resource properties", "timber resource properties" (each as defined in the Tax Act), and options in respect of, or interests in, or for civil law rights in, any such property (whether or not such property exists). Notwithstanding the foregoing, in certain circumstances set out in the Tax Act, a Common Share could be deemed to be taxable Canadian property. Even if a Common Share is taxable Canadian property of a Non-Resident Holder, such Non-Resident Holder may be exempt from tax under the Tax Act on the disposition of the Common Share by virtue of an applicable income tax treaty or convention. A Non-Resident Holder who disposes of taxable Canadian property may be required to file a Canadian income tax return for the year in which the disposition occurs, regardless of whether the Non-Resident Holder is liable for tax under the Tax Act in respect of such disposition.

**A Non-Resident Holder contemplating a disposition of a Common Share that may constitute taxable Canadian property should consult a tax advisor prior to such disposition.**

**Dividends on Common Shares**

Dividends paid or credited, or deemed to be paid or credited, on a Non-Resident Holder's Common Shares will be subject to Canadian withholding tax under the Tax Act. The general rate of withholding tax applicable to dividends under the Tax Act is 25% of the gross amount of the dividend, although such rate may be reduced under the provisions of an applicable income tax treaty or convention between Canada and the Non-Resident Holder's country of residence. For example, under the *Canada-United States Income Tax Convention, 1980*, as amended, the rate is generally reduced to 15% where the Non-Resident Holder beneficially owns such dividends and is a resident of the United States for the purposes of, and is fully entitled to the benefits of, that treaty. **Non-Resident Holders should seek advice from their own tax advisors in this regard.**

**MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS FOR -U.S. HOLDERS**

The following discussion provides a general summary based on present law of the material U.S. federal income tax considerations that may be relevant to U.S. holders (defined below) who hold and dispose of our common shares acquired following registration pursuant to this Offering Circular. This discussion is based upon the Code, existing final, temporary and proposed Treasury Regulations promulgated thereunder ("Treasury Regulations"), applicable U.S. judicial decisions and published rulings and administrative pronouncements of the Internal Revenue Service ("IRS"), all as currently in effect as of the date of this Offering Circular, and all of which are subject to change in a material and adverse manner or differing interpretations, possibly with retroactive effect, and any such change or differing interpretation could affect the accuracy of the statements and conclusions set forth herein. This discussion does not discuss the potential effects, whether adverse or beneficial, of any proposed legislation that, if enacted, could be applied on a retroactive, current or prospective basis.

This discussion is for general information purposes only and does not purport to be a complete description discussion of all tax considerations that may be relevant to U.S. holders. This discussion applies only to U.S. holders that will hold the common shares as capital assets within the meaning of Section 1221(a) of the Code (generally, property held for investment) and that use the U.S. dollar as their functional currency. This discussion does not describe all of the U.S. federal income tax considerations that may be relevant to shareholders in light of their particular circumstances, including, without limitation, specific tax consequences to a U.S. holder under an applicable income tax treaty, nor does it apply to holders subject to special rules under the U.S. federal income tax laws, such as, for example, banks or other financial institutions, underwriters, insurance companies, mutual funds, tax-exempt entities and organizations, governmental organizations, brokers, dealers or traders in securities (including traders in securities that elect to apply a mark-to-market accounting method), currencies or commodities, regulated investment companies, real estate investment trusts, partnerships and other pass-through entities (including S-corporations) and partners, owners or investors (or shareholders) therein, U.S. expatriates or former citizens or long-term residents of the United States, pension funds, individual retirement and other tax-deferred accounts, "controlled foreign corporations," "passive foreign investment companies," and "personal holding companies" (each as defined in the Code), entities subject to the U.S. anti-inversion rules or the base erosion and anti-abuse tax, persons liable for the alternative minimum tax, persons required to accelerate the recognition of any item of gross income as a result of such income being recognized on an "applicable financial statement," persons that directly, indirectly or constructively, own or have owned or will own at any time during the five-year period ending on the closing date, 10% or more of the total combined voting power or value of Company shares, persons who hold or received their common shares through the exercise of employee stock options or otherwise as compensation or through a tax-qualified retirement plan, U.S. holders who will hold the common shares in connection with a trade or business, permanent establishment or fixed base outside the U.S., persons that have been, are, or will be a resident or deemed to be a resident of Canada for purposes of the Tax Act, persons that use or hold, will use or hold, or that are or will be deemed to use or hold common shares in connection with carrying on a business in Canada, persons whose common shares constitute "taxable Canadian property" under the Tax Act or U.S. holders that hold the common shares as part of a hedge, straddle, conversion, constructive sale or other integrated or risk reduction financial transaction. This summary also does not address any considerations relating to U.S. federal taxes other than the income tax (such as estate or gift taxes), any U.S. state and local, or non-U.S. tax laws or considerations, the Medicare tax on net investment income, any considerations with respect to any withholding required under the Foreign Account Tax Compliance Act of 2010 (including the Treasury Regulations promulgated thereunder and any intergovernmental agreements entered in connection therewith and any laws, regulations or practices adopted in connection with any such agreement), or, except as expressly addressed below, any U.S. tax reporting requirements. Holders that are subject to special provisions under the Code, including, but not limited to, holders described immediately above, should consult their own tax advisors regarding the U.S. federal, U.S. state and local, and non-U.S. tax consequences relating to the acquisition, ownership and disposition of Company common shares.

As used in this Offering Circular the term "U.S. holder" means a beneficial owner of our common shares acquired following registration pursuant to this Offering Circular that is, for U.S. federal income tax purposes: (i) a citizen or individual resident of the U.S., (ii) a corporation, or other entity or arrangement taxable as a corporation, created or organized in or under the laws of the U.S., any state thereof or the District of Columbia, (iii) a trust if a court within the U.S. is able to exercise primary supervision over the administration of the trust and one or more U.S. persons have the authority to control all substantial decisions of the trust or the trust has a valid election in effect under applicable Treasury Regulations to be treated as a U.S. person; or (iv) an estate the income of which is subject to U.S. federal income taxation regardless of its source.

If a partnership or other entity or arrangement classified as a partnership for U.S. federal income tax purposes holds our common shares, the U.S. federal income tax treatment of such entity or a partner (or other owner) of such entity holding or disposing of our common shares generally will depend on the status of the partner (or other owner), the activities of the partnership and certain determinations made at the partner level. This summary does not address the tax consequences to any such entity or arrangement or partner (or owner). Partnerships and persons treated as partners in partnerships should consult their own tax advisors regarding the specific U.S. federal income tax consequences to them of owning and disposing of our common shares in light of their particular circumstances.

The following discussion is not intended to be, and should not be construed as, legal or tax advice with respect to any U.S. holder of U.S. federal income tax considerations relating to the ownership and disposition of our common shares acquired following registration pursuant to this Offering Circular. No ruling from the IRS has been requested, or will be obtained, regarding the U.S. federal income tax considerations applicable to U.S. holders as discussed in this summary. This summary is not binding on the IRS, and the IRS is not precluded from taking a position that is different from, and contrary to, the positions taken in this summary. In addition, because the authorities on which this summary is based are subject to various interpretations, the IRS and the U.S. courts could disagree with one or more of the positions taken in this summary. All holders should consult their own tax advisors as to the specific tax consequences to them of the ownership and disposition of our common shares including with respect to reporting requirements and the applicability and effect of any U.S. federal, state, local, non-U.S. or other tax laws in light of their particular circumstances.

Dividends Distributions on Company Common Shares

Subject to the discussion below of special rules applicable to passive foreign investment companies ("PFICs"), the gross amount of any distribution, including a constructive distribution, with respect to Company common shares will be included in a U.S. holder's gross income as a dividend (without reduction for any Canadian income tax withheld from such distribution) to the extent of the Company's current and accumulated earnings and profits as determined under U.S. federal income tax laws. To the extent that a distribution exceeds the Company's current and accumulated "earnings and profits", such distribution will be treated first as a tax-free return of capital to the extent of a U.S. holder's tax basis in the common shares and thereafter as gain from the sale or exchange of such common shares. However, the Company does not expect to maintain calculations of earnings and profits for U.S. federal income tax purposes. Therefore, a U.S. holder should expect that any such distribution by us with respect to Company common shares generally will be treated as a dividend from foreign sources when actually or constructively received and thus will constitute ordinary dividend income. Dividends will not be eligible for the dividends-received deduction generally available to U.S. corporations. Dividends received from a "qualified foreign corporation" by eligible non-corporate U.S. holders that satisfy a minimum holding period and certain other requirements generally will be taxed at the preferential rate applicable to qualified dividend income. The Company will be treated as a qualified foreign corporation if its shares are readily tradable on an established securities market in the United States or the Company qualifies for comprehensive benefits under the Convention between the United States of America and Canada with respect to Taxes on Income and on Capital (the "U-S.-Canada Tax Convention") U.S.-Canada income tax treaty and the Company is not a PFIC for either the taxable year of distribution or prior taxable year. U.S. Treasury guidance indicates that shares listed on the Nasdaq will be considered readily tradable on an established securities market in the United States. There can be no assurance, however, that the Company common shares will be considered readily tradable on an established securities market now or in future years or that the Company will qualify for comprehensive benefits under the U.S.-Canada Tax Convention. The dividend rules are complex, and each U.S. holder should consult its own tax advisor regarding the application of such rules in light of its own circumstances.

The amount of any distribution Dividends paid in a currency other than U.S. dollars will be included in income in a U.S. dollar amount based on the exchange rate in effect on the date the dividend is distributed, whether or not the currency is converted into U.S. dollars at that time. A U.S. holder's tax basis in the non-U.S. currency will equal the U.S. dollar amount included in income. Any gain or loss realized on a subsequent conversion or other disposition of the non-U.S. currency for a different U.S. dollar amount generally will be U.S. source ordinary income or loss, including for foreign tax credit purposes. If dividends distributions paid in a currency other than U.S. dollars are converted into U.S. dollars on the day they are distributed, a U.S. holder generally will not be required to recognize foreign currency gain or loss in respect of the dividend income. Different rules apply to U.S. holders who use the accrual method of tax accounting. Each U.S. holder should consult its own U.S. tax advisor regarding the U.S. federal income tax consequences of receiving, owning, and disposing of foreign non-U.S. currency in light of its own circumstances.

A U.S. holder must include any tax withheld from a dividend payment in this gross amount even though they do not in fact receive such withheld tax. Subject to certain limitations, Canadian income tax withheld and paid (whether directly by a U.S. holder or through withholding) over to Canada will be creditable or deductible against the U.S. holder's U.S. federal income tax liability at the election of such U.S. holder. Generally, an election to deduct foreign taxes instead of claiming foreign tax credits applies to all foreign taxes paid or accrued in the taxable year, and a credit will reduce a U.S. holder's U.S. federal income tax liability on a dollar-for-dollar basis, whereas a deduction will reduce a U.S. holder's income that is subject to U.S. federal income tax. This election is made on a year-by-year basis and applies to all foreign taxes paid (whether directly or through withholding) by a U.S. holder during a year. Special rules apply in determining the foreign tax credit limitation with respect to dividends that are subject to preferential tax rates for qualified dividend income. To the extent a refund of the tax withheld is available to a U.S. holder under Canadian law or under the U-S.-Canada Tax Convention, the amount of tax withheld that is refundable will not be eligible for credit against such U.S. holder's U.S. federal income tax liability, regardless of whether such benefits are claimed by the U.S. holder. The rules governing foreign tax credits are complex and involve the application of rules that depend on a U.S. holder's particular circumstances. Accordingly, U.S. holders are urged to consult their own tax advisers advisors regarding the creditability of foreign taxes in light of their own particular circumstances.

Sales or Other Dispositions of Company Common Shares

Subject to the discussion below of special rules applicable to PFICs, a U.S. holder generally will recognize capital gain or loss on the sale or other disposition of Company common shares in an amount equal to the difference between the U.S. dollar value of the amount realized (cash received plus the fair market value of any property received) and the U.S. holder's adjusted tax basis in the Company common shares sold or otherwise disposed. Any gain or loss generally will be treated as arising from U.S. sources and will be long-term capital gain or loss if the U.S. holder's holding period for such shares sold or disposed exceeds one year. Preferential tax rates may apply to long-term capital gains of non-corporate U.S. holders (including individuals). There are currently no preferential tax rates for long-term capital gain of a U.S. holder that is a corporation. Deductions for capital loss are subject to significant limitations under the Code. Each U.S. holder should consult its own tax advisors regarding the tax consequences of a sale or other disposition of Company common shares in light of its own circumstances.

If Company common shares are sold, exchanged or otherwise disposed of in a taxable transaction for Canadian dollars, the amount realized generally will be the U.S. dollar value of the Canadian dollars received based on the spot rate in effect on the date of sale, exchange, or other taxable disposition. If a U.S. holder is a cash method taxpayer and the Company common shares are traded on an established securities market, Canadian dollars received will be translated into U.S. dollars at the spot rate on the settlement date of the taxable disposition. An accrual method taxpayer may elect the same treatment with respect to the taxable disposition of common shares traded on an established securities market, provided that the election is applied consistently from year to year. Such election cannot be changed without the consent of the IRS. Canadian dollars received on the taxable disposition of a Company common share generally will have a tax basis equal to its U.S. dollar value as determined pursuant to the rules above. Any gain or loss recognized by a U.S. holder on a sale, exchange or other taxable disposition of the Canadian dollars will be ordinary income or loss and generally will be U.S.-source gain or loss. Each U.S. holder should consult its own tax advisors regarding the tax consequences of a sale or other taxable disposition of Company common shares for Canadian dollars in light of its own circumstances.

Passive Foreign Investment Company Considerations

The Company generally will be a PFIC for any taxable year if, after the application of certain "look-through" rules with respect to subsidiaries in which the Company holds at least 25% of the value of such subsidiary, (a) 75% or more of the gross income of the Company for such tax year is passive income (the "income test") or (b) 50% or more of the average value of the Company's assets (generally calculated as a quarterly average) is attributable to assets that either produce passive income or are held for the production of passive income (the "asset test"). "Gross income" generally includes all sales revenues less the cost of goods sold, plus income from investments and incidental or outside operations or sources, and "passive income" generally includes, for example, dividends, interest, certain non-active rents and royalties, certain gains from the sale of stock and securities, and certain gains from commodities transactions.

The determination of whether the Company is a PFIC for the current taxable year ending June 30, 2025 cannot be made at this time, and no assurance can be given as to whether the Company will be treated as a PFIC for its current taxable year. In addition, no assurance can be given as to whether the Company will be a PFIC in future taxable years, and the Company has not made a determination in this regard in respect of its prior taxable year. No opinion of legal counsel or ruling from the IRS concerning the status of the Company as a PFIC has been obtained or is currently planned to be requested. The determination of PFIC status is inherently factual, is subject to a number of uncertainties, and can be determined only annually after the close of the taxable year in question. Further, a company's PFIC status can change depending, among other things, on changes in the composition and relative value of its gross receipts and assets, changes in its operations and changes in the market value of its stock. Additionally, the analysis depends, in part, on the application of complex U.S. federal income tax rules, which are subject to differing interpretations. Accordingly, it is possible that the Company is or has been a PFIC for U.S. federal income tax purposes, and there can be no assurance that the Company will not be a PFIC for its current or any future taxable year. U.S. holders should consult their own U.S. tax advisors regarding the Company's PFIC status.

If the Company were a PFIC for any taxable year during which a U.S. holder owned Company common shares, unless the U.S. holder makes a "mark-to-market" election " or a "QEF" election (each as described below) for the first taxable year of the Company in which it was treated as a PFIC, and in which the U.S. holder held (or was deemed to hold) such common shares, such holder generally would be subject to special rules with respect to "excess distributions" made by the Company on the its common shares and with respect to gain from the disposition of such common shares, regardless of whether the Company continues to be a PFIC in subsequent tax years (unless the Company ceases to be a PFIC and the U.S. holder makes a special "purging" election, described below). An "excess distribution" generally is defined as the excess of distributions with respect to Company the common shares received by a U.S. holder in any tax year over 125% of the average annual distributions such U.S. holder has received from the Company during the shorter of the three preceding tax years, or such U.S. holder's holding period for such common shares. Generally, a U.S. holder would be required to allocate any excess distribution or gain from the disposition of the Company common shares ratably to each day in its holding period for such common shares. Such amounts allocated to the year of the disposition or excess distribution or any year prior to the first year in which the Company was a PFIC would be taxed as ordinary income in the current year, and amounts allocated to other tax years would be taxed as ordinary income at the highest marginal U.S. federal income tax rate in effect for each such year and an interest charge at a rate applicable to underpayments of tax would apply.

The tax liability for amounts allocated to taxable years prior to the year of disposition or excess distribution cannot be offset by any net operating losses, and gains (but not losses) realized on the sale of our common shares cannot be treated as capital gains, even if a U.S. holder holds our common shares as capital assets.

If the Company is treated as a PFIC for any year during which a U.S. holder holds or is deemed to hold our common shares, the Company generally would continue to be treated as a PFIC with respect to that U.S. holder for all succeeding years during which the U.S. holder holds or is deemed to hold such common shares, even if the Company ceased to meet the threshold requirements for PFIC status, unless under certain circumstances the U.S. holder makes a valid deemed sale or deemed dividend election (a "purging" election) under the applicable Treasury Regulations with respect to its common shares.

If the Company is treated as a PFIC with respect to a U.S. holder for any taxable year, to the extent any of its subsidiaries are also PFICs, such U.S. holder may be deemed to own a proportionate interest in such lower-tier PFICs that are directly or indirectly owned by the Company, and such U.S. holder may be subject to the adverse tax consequences described above with respect to the shares of such lower-tier PFICs such U.S. holder would be deemed to own. As a result, a U.S. holder may incur liability for any excess distribution described above if the Company receives a distribution from a lower-tier PFICs or if any shares in such lower-tier PFICs are disposed of (or deemed disposed of). Each U.S. holder should consult its own U.S. tax advisor regarding the application of the PFIC rules to any of our subsidiaries.

A U.S. holder of "marketable stock" (as defined below) in a PFIC may make a mark-to-market election for such stock to elect out of the tax treatment discussed above. If a U.S. holder makes a valid mark-to-market election for our common shares, such U.S. holder will include in income for each year that the Company is treated as a PFIC with respect to such U.S. holder an amount equal to the excess, if any, of the fair market value of our common shares as of the close of such U.S. holder's taxable year over its adjusted basis in such common shares. Such U.S. holder will be allowed a deduction for the excess, if any, of the adjusted basis of our common shares over their fair market value as of the close of the taxable year. However, deductions will be allowable only to the extent of any net mark-to-market gains on our common shares included in such U.S. holder's income for prior taxable years. Amounts included in such U.S. holder income under a mark-to-market election, as well as gain on the actual sale or other disposition of our common shares, will be treated as ordinary income. Ordinary loss treatment will also apply to the deductible portion of any mark-to-market loss on our common shares, as well as to any loss realized on the actual sale or disposition of our common shares, to the extent the amount of such loss does not exceed the net mark-to-market gains for such common shares previously included in income. Such U.S. holder's basis in our common shares will be adjusted to reflect any such income or loss amounts.

The mark-to-market election is available only for "marketable stock", which is stock that is regularly traded on a qualified exchange or other market, as defined in applicable Treasury Regulations. The Nasdaq is a qualified exchange, The OTCID Basic Market is not a qualified exchange under current U.S. Treasury guidance. Additionally, there can be no assurance that the trading in our common shares will be sufficiently regular to qualify our common shares as marketable stock. Because a mark-to-market election cannot be made for equity interests in any lower-tier PFICs we own, a U.S. holder generally will continue to be subject to the PFIC rules with respect to its indirect interest in any investments held by us that are treated as an equity interest in a PFIC for U.S. federal income tax purposes. Each U.S. holder should consult its own tax advisor as to the availability and desirability of a mark-to-market election, as well as the impact of such election on interests in any lower-tier PFICs.

Alternatively, if a non-U.S. entity treated as a corporation is a PFIC, a holder of shares in that entity may avoid taxation under the PFIC rules described above regarding excess distributions and recognized gains by making a "qualified electing fund" or QEF election to include in income its share of the entity's income on a current basis. However, a U.S. holder may make a QEF election with respect to common shares only if we furnish such U.S. holder annually with certain tax information, and we currently do not intend to prepare or provide such information.

In any year in which the Company is classified as a PFIC, a U.S. holder will be required to file an annual report with the IRS containing such information as Treasury Regulations and/or other IRS guidance may require, which filing obligation would generally commence in the first tax year in which the Company is classified as a PFIC and in which such U.S. holder holds common shares. In addition to penalties, a failure to satisfy such reporting requirements may result in an extension of the time period during which the IRS can assess a tax. U.S. holders should consult their own tax advisors regarding the requirements of filing such information returns under these rules, including the requirement to file an IRS Form 8621 annually.

Each U.S. holder is urged to consult its own tax advisor regarding the application of the PFIC rules to an investment in Company common shares.

Backup Withholding and Information Reporting

In general, payments made within the U.S., or by a U.S. payor or U.S. middleman, of dividends on, and proceeds arising from the sale or other taxable disposition of the Company common shares generally may be subject to information reporting requirements, unless an exemption applies. Backup withholding may apply to amounts subject to information reporting if, in general, the applicable U.S. holder fails to provide an accurate taxpayer identification number (generally on Form W-9), or is described in certain other categories of persons, including any person notified by the IRS that such U.S. holder has previously failed who fails to properly report items subject to backup withholding tax or otherwise fails to establish an exemption from backup withholding. However, certain exempt persons, such as U.S. holders that are corporations, generally are excluded from these information reporting and backup withholding tax rules. Backup withholding is not an additional tax. U.S. holders can claim a credit against their U.S. federal income tax liability for the amount of any backup withholding and a refund of any excess, provided that all required information is timely provided to the IRS. U.S. holders should consult their own tax advisors as to their qualification for exemption from backup withholding and the procedure for establishing an exemption in light of their particular circumstances.

Certain U.S. holders holding specified foreign financial assets with an aggregate value in excess of the applicable dollar thresholds are required to report information to the IRS relating to Company common shares, subject to certain exceptions (including an exception for shares held in accounts maintained by U.S. financial institutions), on IRS Form 8938 for each year in which they hold Company common shares. Substantial penalties apply to any failure to timely file IRS Form 8938 with such holder's U.S. federal income tax return unless the failure is shown to be due to reasonable cause and not willful neglect. Also, in the event a U.S. holder does not file IRS Form 8938 or fails to report a specified foreign financial asset that is required to be reported, the statute of limitations on the assessment and collection of U.S. federal income taxes of such U.S. holder for the related taxable year may not close before the date which is three years after the date on which the required information is filed. U.S. holders should consult their own tax advisors regarding the effect, if any, of these rules on the ownership and disposition of Company common shares.

THE DISCUSSION ABOVE IS NOT INTENDED TO CONSTITUTE A COMPLETE ANALYSIS OF ALL TAX CONSIDERATIONS APPLICABLE TO U.S. HOLDERS AND DOES NOT COVER SPECIFIC TAX MATTERS THAT MAY BE OF IMPORTANCE OR APPLICABLE TO A PARTICULAR U.S. HOLDER. THE TAX CONSEQUENCES OF THE ACQUISITION, HOLDING AND DISPOSING OF COMPANY COMMON SHARES WILL DEPEND ON A U.S. HOLDER'S SPECIFIC SITUATION AND CIRCUMSTANCES. EACH U.S. HOLDER IS URGED TO CONSULT ITS OWN TAX ADVISOR ABOUT THE TAX CONSEQUENCES TO IT OF ACQUIRING, HOLDING AND DISPOSING OF COMPANY COMMON SHARES IN LIGHT OF THE U.S. HOLDER'S OWN CIRCUMSTANCES, AS WELL AS THE APPLICABILITY AND EFFECT OF ANY U.S. FEDERAL, STATE, LOCAL, FOREIGN NON-U.S. OR OTHER TAX LAWS.

**Plan of Distribution**

We are offering, at an offering price of $0.10 per Common Share (the "**Offering Price**"), 300,000,000 Common Shares for up to $30,000,000, exclusive of any Investor Processing Fees collected by the Company. The Company has the right to agree on any order of sale of their respective Common Shares in this Offering, as subscriptions are received, as they determine in their discretion.

The minimum number of Common Shares that a prospective investor may purchase is 100 Common Shares for a subscription price of $0.10, which is exclusive of the Investor Processing Fee. It is the Company's discretion to modify, or waive this requirement for investors without notice.

At the time of each subscription, the investor will be required to pay the Company a 2.0% Investor Processing Fee to help offset certain transaction expenses for which the Company is required to pay or reimburse affiliates of the Broker. If the Offering is fully subscribed, investors will pay the Company a total of $600,000 in Investor Processing Fees. The Broker will receive a maximum cash commission of $27,000 on Investor Processing Fees. It is the Company's discretion to modify or waive this requirement for investors without notice.

Offers and sales of the Common Shares in the Offering will commence within two calendar days after the Effective Date of the Offering Statement. The Common Shares are being offered on a "best efforts" basis under Regulation A+ of Section 3(b) of the Securities Act, as amended, for Tier 2 offerings. The Offering will terminate on the first to occur of: (i) the date on which all 300,000,000 Common Shares have been sold; (ii) the date which is one year from this Offering being qualified by the SEC; or (iii) the date on which this Offering is earlier terminated by us, in our sole discretion, with respect to the Company's Common Shares offered in this Offering, regardless of the amount of capital raised (in each case, the "**Termination Date**"). The Company has the right to terminate this Offering at any time, regardless of the number of Common Shares that have been sold in the Offering.

The Company engaged DealMaker Securities LLC ("**Broker**"), a broker-dealer registered with the SEC and admitted to membership in FINRA and the Securities Investor Protection Corporation ("**SIPC**"). Under the terms of its agreement with the Company, neither the Broker nor sub-selling agents, if any, are obligated to purchase any Common Shares being offered by the Company in this Offering, and are not required to sell any specific number or dollar amount of such Common Shares in the Offering.

No investor purchasing Common Shares will have any assurance that other purchasers will invest in this Offering. Once Common Shares are subscribed for, subscription funds will be held in our escrow account with Enterprise Bank & Trust, our Escrow Agent for the Offering. If we reject your subscription, in whole or in part, or if we accept it but do not conduct a closing of this Offering thereafter due to the termination of the Offering for any reason, the Escrow Agent will promptly return your investment funds without interest or deduction, in accordance with Rule 10b-9 under the Exchange Act. Until a closing of the Offering occurs, your subscription agreement will remain revocable and your investment funds will be refundable. Once a closing has occurred, your subscription will become irrevocable, your funds will no longer be refundable and your Common Shares will be issued.

**Commissions and Discounts**

The following table shows the maximum discounts, commissions and fees payable to the Broker and its affiliates, as well as certain other fees, in connection with this Offering by the Company, assuming a fully subscribed offering. Actual fees are anticipated to be lower than the maximum shown below.

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| | | |
|:---|:---|:---|
|  | **Per Common Share** | **Total** |
| Public Offering price plus Investor Processing Fee: | $0.102 | $30600000 |
| Anticipated maximum Broker commissions: | $0.006 | $1850500 |
| Proceeds, before other expenses: | $0.096 | $28749500 |

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When we signed the engagement agreement (the "**DealMaker Order Form**") with the Broker, we paid it a $27,500 advance against accountable expenses anticipated to be incurred in this Offering (refundable to the Company to the extent of expenses not actually incurred by the Broker), and we have agreed to pay the Broker a cash commission equal to four and one half percent (4.5%) of the amount raised in the Offering.

**Other Terms**

The aggregate fees payable to the Broker and its affiliates are described below. The Broker, a broker-dealer registered with the SEC and a member of FINRA, has been engaged to provide: (i) pre-offering analysis; (ii) pre-offering consulting for self-directed electronic roadshow; and (iii) advisory, compliance and consulting services in connection with this Offering.

**Pre-Offering Analysis**

● Reviewing the Company, its affiliates, executives, and other parties as described in Rule 262 of Regulation A and consulting with the Company regarding the same.

**Pre-Offering Consulting for Self-Directed Electronic Roadshow**

● Review with the Company on best business practices regarding Offering in light of current market conditions and prior self-directed raises;

● Review with the Company on question customization for investor questionnaire, selection of webhosting services, and template for campaign page;

● Advising the Company on compliance of marketing material and other communications with the public with applicable legal standards and requirements;

● Providing advice to the Company on this Offering Statement and revisions;

● Assisting in the preparation of SEC and FINRA filings; and

● Working with the Company's SEC counsel in providing information to the extent necessary.

**Advisory, Compliance and Consulting Services during the Offering**

● Reviewing investor information, including identity verification, performing AML (Anti-Money Laundering) and other compliance background checks, and providing the Company with information on an investor in order for the Company to determine whether to accept such investor into the Offering;

● Discussions with the Company regarding additional information or clarification on an investor invited into the Offering by the Company (as necessary);

● Coordinating with third party agents and vendors in connection with performance of services;

● Reviewing each investor's subscription agreement to confirm such investor's participation in the Offering and providing recommendations to the Company regarding whether to accept the subscription agreement for the investor's participation in the Offering;

● Contacting and/or notifying the Company, if needed, to gather additional information or clarification on an investor;

● Providing ongoing advice to the Company on compliance of marketing material and other communications with the public, including with respect to applicable legal standards and requirements;

● Review with the Company any material changes to the Offering Statement which may require an amended filing; and

● Reviewing third party provider work product with respect to compliance with applicable rules and regulations.

The maximum compensation to be paid to the Broker for its pre-offering analysis, pre-offering consulting and advisory, compliance and consulting services provided during the Offering is $1,404,500, representing the sum of: (i) Broker Commission assuming the Offering is fully subscribed ($1,377,000); and (ii) the Company's $27,500 advance for a pre-Offering analysis.

The Broker's affiliates also agreed to provide the following services to us:

**Marketing and Advisory Services**

The Company has also engaged DealMaker Reach, LLC, ("**Reach**"), an affiliate of the Broker to provide certain digital marketing services, including (i) both pre-Offering marketing and advisory services and (ii) ongoing marketing and advisory services during the Offering. In particular, pre-Offering marketing and advisory services include those relating to design and development of the Company's Offering website and audience-building infrastructure and video production on such website. Ongoing marketing and advisory services during the Offering include services related to conversion rate optimization, email marketing, Google advertisements, social media presence, sourcing and negotiating private advertisement placements with publishers and email newsletters, and reporting (weekly calls following the Offering's launch; planning, implementation and execution of marketing budget; and coordinating with third-party agents regarding performance of services).

For Reach's services, we will pay Reach: (i) a one-time advance of $30,000, and $11,000 per month for three months (total of $33,000) for accountable expenses (to be reimbursed to the Company if expenses are not incurred), (ii) $11,000 in monthly marketing advisory fees (up to a maximum of $99,000 after the commencement of the Offering), and (iii) on a supplemental basis, Reach may be asked to provide marketing services on a case-by-case basis and is authorized to charge up to $250,000 for these services. The maximum compensation to be paid to Reach is $412,000.

The maximum compensation to be paid to Reach for its marketing and advisory services, as set forth in this "Marketing and Advisory Services" subsection, is derived from a monthly flat fee, plus variable marketing fees, which equates to approximately 1.14% of the gross Offering proceeds (which includes the total Investor Processing Fee). The amount may change based on the amount of shares sold.

**Technology Services**

The Company has engaged Novation Solutions Inc. O/A DealMaker ("**DealMaker**"), an affiliate of the Broker to create and maintain the online subscription processing platform for the Offering.

After the Commission's qualification of the Offering Statement, this Offering will be conducted using the online subscription processing platform of DealMaker at www.invest.damon.com embedded on the investment landing page of the issuer's website. On this website, investors can receive, review, execute and deliver subscription agreements electronically and pay the purchase price through a third-party processor by ACH debit transfer, wire transfer or credit card.

For the above services pertaining to infrastructure creation and maintenance, we will pay DealMaker: (i) a one-time advance of $10,000, and $2,000 per month for three months (total of $6,000) for accountable expenses (to be reimbursed to the Company if expenses are not incurred); and (ii) a monthly platform fee of $2,000 (up to a maximum of $18,000) one the Offering commences.

The maximum compensation to be paid to the Broker and its affiliates is $1,850,500 (6.05%) of the Offering total, but may be greater than 6.05% if less than the maximum number of shares are sold in the offering.

The Broker and participating broker-dealers, if any, and others will be indemnified by the Company with respect to the offering and the disclosures made by the Company in its Form 1-A and related Offering Circular.

**LEGAL MATTERS**

The validity of the Common Shares covered by this Offering Circular and certain other legal matters as to British Columbia, Canada law will be passed upon by McMillan LLP, of Vancouver, British Columbia.

**EXPERTS**

The audited consolidated financial statements of Grafiti Holding Inc. as of June 30, 2024, 2023 and 2022 and for each of the years in the period ended June 30, 2024, 2023 and 2022, incorporated by reference into this Offering Circular have been so included in reliance on the report (which report expresses an unqualified opinion and includes an explanatory paragraph as to Grafiti Holding Inc.'s ability to continue as a going concern) of Marcum LLP, an independent registered public accounting firm, given upon their authority as experts in accounting and auditing.

The audited consolidated financial statements of Damon Motors Inc. as of June 30, 2024 and for the year ended June 30, 2024, incorporated by reference into this Offering Circular have been so included in reliance on the report (which report expresses an unqualified opinion and includes an explanatory paragraph as to Damon Motors Inc.'s ability to continue as a going concern) of Marcum LLP, an independent registered public accounting firm, given upon their authority as experts in accounting and auditing.

The consolidated financial statements of Damon Motors Inc. as of June 30, 2023 and for each of the two years in the period ended June 30, 2023 incorporated by reference into this Offering Circular have been so included in reliance on the report of BDO Canada LLP, an independent registered public accounting firm, appearing elsewhere herein, given on the authority of said firm as experts in auditing and accounting. The report on the consolidated financial statements contains an explanatory paragraph regarding the ability of Damon Motors Inc. to continue as a going concern.

**WHERE YOU CAN FIND MORE INFORMATION**

We have filed with the SEC an offering statement on Form 1-A under the Securities Act with respect to the Common Shares. This Offering Circular, which constitutes a part of the offering statement, does not contain all of the information set forth in the offering statement or the exhibits and schedules filed therewith. For further information about us or our securities offered hereby, we refer you to the Offering Statement and the exhibits and schedules filed thereto. Statements contained in this Offering Circular regarding the contents of any contract or any other document that is filed as an exhibit to the offering statement are not necessarily complete, and each such statement is qualified in all respects by reference to the full text of such contract or other document filed as an exhibit to the offering statement.

We voluntarily file periodic reports on the forms for U.S. domestic issuers, such as annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, which are more detailed and extensive in certain respects, and which must be filed more promptly, than the forms currently available to foreign private issuers. Despite our election to voluntarily file on U.S. domestic issuer forms, we maintain our status as a foreign private issuer, and accordingly we are exempt from, among other things, the rules under the Exchange Act prescribing the furnishing and content of proxy statements and our officers, directors and principal shareholders are exempt from the reporting and short-swing profit recovery provisions contained in Section 16 of the Exchange Act.

The SEC maintains a website that contains reports and information statements and other information about issuers, such as us, who file electronically with the SEC. The address of that website is www.sec.gov.

We also maintain a website at www.damon.com through which you can access our SEC filings. The information set forth on our website is not part of this Offering Circular, and you should not consider it to be a part of this Offering Circular. We make available free of charge on or through our website our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, as soon as reasonably practicable after we electronically file such material with or otherwise furnish it to the Commission.

**information incorporated by reference**

We are incorporating by reference into this Offering Circular certain information that we filed with the SEC, which means that we are disclosing important information to you by referring you to those documents. The information incorporated by reference is deemed to be part of this Offering Circular, except for information incorporated by reference that is superseded by information contained in this Offering Circular. This means that you must look at all of the SEC filings that we incorporate by reference to determine if any statements in the Offering Circular or any document previously incorporated by reference have been modified or superseded. This Offering Circular incorporates by reference the documents set forth below that we have previously filed with the SEC:

● the audited financial statements for Grafiti Holding Inc. for the years ended June 30, 2024, 2023, and 2022 as included in the Company's registration statement on [Form S-1](https://www.sec.gov/Archives/edgar/data/2000640/000121390025024746/ea0234430-s1_damon.htm#F_001) filed with the SEC on March 18, 2025 (File No. 333-285872);

● the audited financial statements for Damon Motors Inc. for the years ended June 30, 2024 and 2023, as included in the Company's registration statement on [Form S-1](https://www.sec.gov/Archives/edgar/data/2000640/000121390025024746/ea0234430-s1_damon.htm#R_001) filed with the SEC on March 18, 2025 (File No. 333-285872);

● the interim unaudited condensed consolidated financial statements of Damon Inc. (formerly Grafiti Holding Inc.) for the three month period ended September 30, 2024, as included in the Company's registration statement on [Form S-1](https://www.sec.gov/Archives/edgar/data/2000640/000121390025024746/ea0234430-s1_damon.htm#F_015) filed with the SEC on March 18, 2025 (File No. 333-285872); and

● the interim unaudited condensed consolidated financial statements of Damon Inc. for the three and nine month periods ended March 31, 2025, as included in our Quarterly Report on [Form 10-Q](https://www.sec.gov/Archives/edgar/data/2000640/000121390025045402/ea0241659-10q_damon.htm#a_002) for the quarter ended March 31, 2025 filed with the SEC on May 19, 2025.

Any information in any of the foregoing documents will automatically be deemed to be modified or superseded to the extent that information in this Offering Circular or in a later filed document that is incorporated or deemed to be incorporated herein by reference modifies or replaces such information.

We will provide each holder of our securities, including any beneficial owner, a copy of the financial statement information that has been incorporated by reference in this Offering Circular upon written or oral request, at no cost to the requester. We maintain a website at www.damon.com through which you can access our SEC filings, and you can access the incorporated financial statements at https://ir.damon.com/Form1A.

We also incorporate by reference all documents we subsequently file in the future pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act after the effective date of the offering statement of which this Offering Circular forms a part prior to the termination of the offering. These documents include periodic reports, such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K (except, in any such case, the portions furnished and not filed pursuant to Item 2.02, Item 7.01 or otherwise), as well as any proxy statements.

We will provide without charge to each person, including any beneficial owners, to whom this Offering Circular is delivered, upon his or her written or oral request, a copy of any or all reports or documents referred to above which have been or may be incorporated by reference into this Offering Circular but not delivered with this Offering Circular, excluding exhibits to those reports or documents unless they are specifically incorporated by reference into those documents. You may request a copy of these documents by writing at the following address:

Damon Inc.

4601 Canada Way, Suite #402

Burnaby, British Columbia, Canada, V5G 4X7

Attn: Bal Bhullar, Chief Financial Officer

Tel: (236) 326-3619

**PART III**

---

| | |
|:---|:---|
| **ITEM 16.** | **Exhibits** |

---

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| | |
|:---|:---|
| **Exhibit<br> Number** | **Exhibit Description** |
| 2.1 | [Certificate of Incorporation, and Notice of Articles (incorporated by reference to Exhibit 3.1 to the Quarterly Report on Form 10-Q filed by the Registrant on December 18, 2024)](http://www.sec.gov/Archives/edgar/data/2000640/000121390024109877/ea022401501ex3-1_damon.htm) |
| 2.2 | [Articles (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed by the Registrant on November 18, 2024)](http://www.sec.gov/Archives/edgar/data/2000640/000121390024099365/ea022140801ex3-1_damon.htm) |
| 3.1 | [Form of Warrant issued to former warrant holders of Damon Motors, Inc. (incorporated by reference to Exhibit 4.3 to the Current Report on Form 8-K filed by the Registrant on November 18, 2024)](https://www.sec.gov/Archives/edgar/data/2000640/000121390024099365/ea022140801ex4-3_damon.htm) |
| 3.2 | [Form of Series A Warrant (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed by the Registrant on March 25, 2025)](http://www.sec.gov/Archives/edgar/data/2000640/000101376225002132/ea023540601ex4-1_damon.htm) |
| 4.1\* | [Form of Subscription Agreement](ea024946101ex4-1_damon.htm) |
| 6.1 | [Liquidating Trust Agreement among Inpixon, Grafiti Holding Inc. and Melanie Figueroa, as initial trustee, dated as of December 27, 2023 (incorporated by reference to Exhibit 10.1 to the Registration Statement on Form 10 filed by the Registrant on July 25, 2024)](https://www.sec.gov/Archives/edgar/data/2000640/000101376224000861/ea020454501ex10-1_grafiti.htm) |
| 6.2# | [Grafiti Holding Inc. 2024 Stock Incentive Plan. (incorporated by reference to Exhibit 10.3 to the Registration Statement on Form 10 filed by the Registrant on July 25, 2024)](https://www.sec.gov/Archives/edgar/data/2000640/000101376224000861/ea020454501ex10-3_grafiti.htm) |
| 6.3# | [Form of Stock Option Agreement under Grafiti Holding Inc. 2024 Stock Incentive Plan. (incorporated by reference to Exhibit 10.4 to the Registration Statement on Form 10 filed by the Registrant on July 25, 2024)](https://www.sec.gov/Archives/edgar/data/2000640/000101376224000861/ea020454501ex10-4_grafiti.htm) |
| 6.4 | [Distributor Agreement, dated as of July 19, 2024, between Grafiti LLC and Grafiti Limited. (incorporated by reference to Exhibit 10.13 to the Registration Statement on Form 10 filed by the Registrant on July 25, 2024)](https://www.sec.gov/Archives/edgar/data/2000640/000101376224000861/ea020454501ex10-13_grafiti.htm) |
| 6.5 | [Administrative Support Service Agreement, dated as of July 19, 2024, between Grafiti LLC and Grafiti Limited. (incorporated by reference to Exhibit 10.14 to the Registration Statement on Form 10 filed by the Registrant on July 25, 2024)](https://www.sec.gov/Archives/edgar/data/2000640/000101376224000861/ea020454501ex10-14_grafiti.htm) |
| 6.6 | [Note Purchase Agreement, dated as of June 26, 2024, between Grafiti Holding Inc. and Streeterville Capital LLC. (incorporated by reference to Exhibit 10.5 to the Registration Statement on Form 10 filed by the Registrant on July 25, 2024)](https://www.sec.gov/Archives/edgar/data/2000640/000101376224000861/ea020454501ex10-5_grafiti.htm) |
| 6.7 | [Secured Promissory Note, dated as of June 26, 2024, issued to Streeterville Capital LLC. (incorporated by reference to Exhibit 10.6 to the Registration Statement on Form 10 filed by the Registrant on July 25, 2024)](http://www.sec.gov/Archives/edgar/data/2000640/000101376224000861/ea020454501ex10-6_grafiti.htm) |
| 6.8 | [Security Agreement, dated as of June 26, 2024, between Grafiti Holding Inc. and Streeterville Capital LLC. (incorporated by reference to Exhibit 10.7 to the Registration Statement on Form 10 filed by the Registrant on July 25, 2024)](https://www.sec.gov/Archives/edgar/data/2000640/000101376224000861/ea020454501ex10-7_grafiti.htm) |
| 6.9 | [Guaranty, dated as of June 26, 2024, by Damon Motors, Inc. in favor of Streeterville Capital LLC. (incorporated by reference to Exhibit 10.8 to the Registration Statement on Form 10 filed by the Registrant on July 25, 2024)](https://www.sec.gov/Archives/edgar/data/2000640/000101376224000861/ea020454501ex10-8_grafiti.htm) |

---

---

| | |
|:---|:---|
| 6.10 | [Guaranty, dated as of June 26, 2024, by Damon Motors Corporation in favor of Streeterville Capital LLC. (incorporated by reference to Exhibit 10.9 to the Registration Statement on Form 10 filed by the Registrant on July 25, 2024)](https://www.sec.gov/Archives/edgar/data/2000640/000101376224000861/ea020454501ex10-9_grafiti.htm) |
| 6.11 | [Amendment No. 1, dated as of October 31, 2024, between Grafiti Holding Inc. and Streeterville Capital LLC. (incorporated by reference to Exhibit 10.27 to the Registration Statement on Form S-1/A filed by the Registrant on November 1, 2024)](https://www.sec.gov/Archives/edgar/data/2000640/000121390024093193/ea021951401ex10-27_grafiti.htm) |
| 6.12 | [Amendment to Security Agreement, dated as of November 13, 2024, between the Company and Streeterville Capital, LLC (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by the Registrant on November 18, 2024)](https://www.sec.gov/Archives/edgar/data/2000640/000121390024099365/ea022140801ex10-1_damon.htm) |
| 6.13# | [Executive Employment Agreement, dated September 12, 2023, between Damon Motors Inc. and Jay Giraud (incorporated by reference to Exhibit 10.21 to the Current Report on Form 8-K filed by the Registrant on November 18, 2024)](http://www.sec.gov/Archives/edgar/data/2000640/000121390024099365/ea022140801ex10-21_damon.htm) |
| 6.14# | [Employment Side Letter Agreement, dated October 17, 2024, between Damon Motors Inc. and Jay Giraud (incorporated by reference to Exhibit 10.22 to the Current Report on Form 8-K filed by the Registrant on November 18, 2024)](http://www.sec.gov/Archives/edgar/data/2000640/000121390024099365/ea022140801ex10-22_damon.htm) |
| 6.15# | [Executive Employment Agreement, dated January 12, 2024, between Damon Motors Inc. and Bal Bhullar (incorporated by reference to Exhibit 10.23 to the Current Report on Form 8-K filed by the Registrant on November 18, 2024)](https://www.sec.gov/Archives/edgar/data/2000640/000121390024099365/ea022140801ex10-23_damon.htm) |
| 6.16# | [Employment Side Letter Agreement, dated August 26, 2024, between Damon Motors Inc. and Bal Bhullar (incorporated by reference to Exhibit 10.24 to the Current Report on Form 8-K filed by the Registrant on November 18, 2024)](https://www.sec.gov/Archives/edgar/data/2000640/000121390024099365/ea022140801ex10-24_damon.htm) |
| 6.17# | [Executive Employment Agreement, dated June 13, 2024, between Damon Motors Inc. and Derek Dorresteyn (incorporated by reference to Exhibit 10.25 to the Current Report on Form 8-K filed by the Registrant on November 18, 2024)](https://www.sec.gov/Archives/edgar/data/2000640/000121390024099365/ea022140801ex10-25_damon.htm) |
| 6.18# | [Employment Side Letter Agreement, dated October 17, 2024, between Damon Motors Inc. and Derek Dorresteyn (incorporated by reference to Exhibit 10.26 to the Current Report on Form 8-K filed by the Registrant on November 18, 2024)](https://www.sec.gov/Archives/edgar/data/2000640/000121390024099365/ea022140801ex10-26_damon.htm) |
| 6.19# | [Executive Employment Agreement, dated July 11, 2022, between Damon Motors Inc. and Amber Spencer (incorporated by reference to Exhibit 10.27 to the Current Report on Form 8-K filed by the Registrant on November 18, 2024)](https://www.sec.gov/Archives/edgar/data/2000640/000121390024099365/ea022140801ex10-27_damon.htm) |
| 6.20# | [Interim Executive Employment Agreement, dated December 4, 2024, between Damon Motors Inc. and Dominique Kwong (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by the Registrant on December 10, 2024)](https://www.sec.gov/Archives/edgar/data/2000640/000121390024107511/ea022418201ex10-1_damon.htm) |
| 6.21# | [Amendment to Interim Executive Employment Agreement, dated May 4, 2025, between Damon Inc. and Dominique Kwong (incorporated by reference to Exhibit 10.4 to the Quarterly Report on Form 10-Q filed by the Registrant on May 19, 2025)](http://www.sec.gov/Archives/edgar/data/2000640/000121390025045402/ea024165901ex10-4_damon.htm) |
| 6.22# | [Form of Indemnification Agreement (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed by the Registrant on December 10, 2024)](https://www.sec.gov/Archives/edgar/data/2000640/000121390024107511/ea022418201ex10-2_damon.htm) |
| 6.23+ | [Securities Purchase Agreement, dated December 20, 2024, between Damon Inc. and Streeterville Capital, LLC (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by the Registrant on December 23, 2024)](https://www.sec.gov/Archives/edgar/data/2000640/000121390024111506/ea022567001ex10-1_damon.htm) |

---

---

| | |
|:---|:---|
| 6.24 | [Registration Rights Agreement, dated December 20, 2024, between Damon Inc. and Streeterville Capital, LLC (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed by the Registrant on December 23, 2024)](https://www.sec.gov/Archives/edgar/data/2000640/000121390024111506/ea022567001ex10-2_damon.htm) |
| 6.25 | [Consulting Agreement, dated as of September 25, 2024, between Grafiti Holding Inc. and Nadir Ali. (incorporated by reference to Exhibit 10.24 to Amendment No. 1 to the Registration Statement on Form 10 filed by the Registrant on September 26, 2024)](https://www.sec.gov/Archives/edgar/data/2000640/000121390024082388/ea021499001ex10-24_grafiti.htm) |
| 6.26 | [Consulting Agreement, dated as of September 25, 2024, between Grafiti Holding Inc. and Melanie Figueroa. (incorporated by reference to Exhibit 10.25 to Amendment No. 1 to the Registration Statement on Form 10 filed by the Registrant on September 26, 2024)](https://www.sec.gov/Archives/edgar/data/2000640/000121390024082388/ea021499001ex10-25_grafiti.htm) |
| 6.27 | [Consulting Agreement, dated as of September 25, 2024, between Grafiti Holding Inc. and Wendy Loundermon. (incorporated by reference to Exhibit 10.26 to Amendment No. 1 to the Registration Statement on Form 10 filed by the Registrant on September 26, 2024)](https://www.sec.gov/Archives/edgar/data/2000640/000121390024082388/ea021499001ex10-26_grafiti.htm) |
| 6.28 | [Coattail Agreement, dated as of November 13, 2024, by and among Grafiti Holding Inc., Jay Giraud and Odyssey Trust Company (incorporated by reference to Exhibit 10.18 to the Current Report on Form 8-K filed by the Registrant on November 18, 2024)](http://www.sec.gov/Archives/edgar/data/2000640/000121390024099365/ea022140801ex10-18_damon.htm) |
| 6.29 | [Founder Agreement, dated as of November 13, 2024, by and between Grafiti Holding Inc. and Jay Giraud (incorporated by reference to Exhibit 10.19 to the Current Report on Form 8-K filed by the Registrant on November 18, 2024)](http://www.sec.gov/Archives/edgar/data/2000640/000121390024099365/ea022140801ex10-19_damon.htm) |
| 6.30 | [Amendment No. 2 to Secured Promissory Note, dated February 27, 2025 (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by the Registrant on February 27, 2025)](http://www.sec.gov/Archives/edgar/data/2000640/000121390025018146/ea023242801ex10-1_damon.htm) |
| 6.31 | [Amendment No. 1 to Securities Purchase Agreement, dated February 27, 2025 (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed by the Registrant on February 27, 2025)](http://www.sec.gov/Archives/edgar/data/2000640/000121390025018146/ea023242801ex10-2_damon.htm) |
| 6.32 | [Technical Design Agreement, dated as of April 4, 2025, by and between Damon Inc. and Engines Engineering S.p.a. (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by the Registrant on April 7, 2025)](http://www.sec.gov/Archives/edgar/data/2000640/000121390025029170/ea023729101ex10-1_damon.htm) |
| 6.33\* | [Agreement between Damon Inc. and DealMaker Securities LLC, dated June 27, 2025](ea024946101ex6-33_damon.htm) |
| 6.34# | [Executive Employment Services Agreement, dated July 16, 2025, by and between Damon Inc. and Dominque Kwong (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by the Registrant on July 17, 2025)](https://www.sec.gov/Archives/edgar/data/2000640/000121390025065191/ea024931901ex10-1_damon.htm) |
| 6.35# | [Executive Employment Services Agreement, dated July 16, 2025, by and between Damon Inc. and Baljinder Bhullar (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed by the Registrant on July 17, 2025)](https://www.sec.gov/Archives/edgar/data/2000640/000121390025065191/ea024931901ex10-2_damon.htm) |
| 7.1+ | [Separation Agreement, dated as of October 23, 2023, between Grafiti Holding Inc. and Inpixon (incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K filed by Inpixon on October 23, 2023)](http://www.sec.gov/Archives/edgar/data/1529113/000101376223005597/ea187106ex2-1_inpixon.htm) |

---

---

| | |
|:---|:---|
| 7.2+ | [Business Combination Agreement among Inpixon, Grafiti Holding Inc., 1444842 B.C. Ltd and Damon Motors, Inc., dated as of October 23, 2023 (incorporated by reference to Exhibit 2.2 to the Current Report on Form 8-K filed by Inpixon on October 23, 2023)](http://www.sec.gov/Archives/edgar/data/1529113/000101376223005597/ea187106ex2-2_inpixon.htm) |
| 7.3 | [Amendment to Business Combination Agreement, dated as of June 18, 2024, among XTI Aerospace, Inc., Grafiti Holding Inc., 1444842 B.C. Ltd. and Damon Motors Inc. (incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K filed by XTI Aerospace, Inc. on June 24, 2024)](https://www.sec.gov/Archives/edgar/data/1529113/000121390024055284/ea020839501ex2-1_xtiaero.htm) |
| 7.4 | [Second Amendment to Business Combination Agreement, dated as of September 26, 2024, among XTI Aerospace, Inc., Grafiti Holding Inc., 1444842 B.C. Ltd. and Damon Motors Inc. (incorporated by reference to Exhibit 2.4 to Amendment No. 1 to the Registration Statement on Form 10 filed by the Registrant on September 26, 2024)](http://www.sec.gov/Archives/edgar/data/2000640/000121390024082388/ea021499001ex2-4_grafiti.htm) |
| 8.1\* | [Form of Tri-Party Escrow Agreement between Damon Inc., DealMaker Securities LLC and Enterprise Bank & Trust](ea024946101ex8-1_damon.htm) |
| 10.1 | [Power of Attorney (included on signature page hereto)](#a_031) |
| 11.1\* | [Consent of Marcum LLP for Damon Inc. (formerly Grafiti Holding Inc.)](ea024946101ex11-1_damon.htm) |
| 11.2\* | [Consent of Marcum LLP for Damon Motors Inc.](ea024946101ex11-2_damon.htm) |
| 11.3\* | [Consent of BDO Canada LLP for Damon Motors Inc.](ea024946101ex11-3_damon.htm) |
| 11.4 | [Consent of McMillan LLP (included in Exhibit 12.1<u>)</u>](ea024946101ex12-1_damon.htm) |
| 12.1\* | [Opinion of McMillan LLP](ea024946101ex12-1_damon.htm) |
| 14.1\* | [Appointment of Agent for Service of Process (Form F-X)](ea024946101ex14-1_damon.htm) |
| 17.1 | [List of Subsidiaries (incorporated by reference to Exhibit 21.1 to Amendment No. 1 to the Registration Statement on Form 10 filed by the Registrant on September 26, 2024)](https://www.sec.gov/Archives/edgar/data/2000640/000121390024082388/ea021499001ex21-1_grafiti.htm) |

---

---

| | |
|:---|:---|
| \* | Filed herewith. |
| + | Schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Registrant agrees to furnish supplementally a copy of any omitted schedule or exhibit to the SEC upon request. |
| # | Indicates a management contract or compensatory plan. |

---

**<u>SIGNATURES</u>**

Pursuant to the requirements of Regulation A, the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form 1-A and has duly caused this Offering Statement to be signed on its behalf by the undersigned, thereunto duly authorized in the City of Vancouver, Province of British Columbia, Canada, on July 22, 2025.

---

| | |
|:---|:---|
| **Damon Inc.** | **Damon Inc.** |
| By: | */s/ Dominique Kwong* |
| Name: | Dominique Kwong |
| Title: | Chief Executive Officer and Director |

---

**<u>POWER OF ATTORNEY</u>**

Each person whose signature appears below constitutes and appoints each of Dominique Kwong and as true and lawful attorneys-in-fact and agents, with full powers of substitution and resubstitution, for them and in their name, place and stead, in any and all capacities, to sign any and all amendments to this Offering Statement, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the SEC, and generally to do all such things in their names and behalf in their capacities as officers and directors to enable the Company to comply with the provisions of the U.S. Securities Act of 1933, as amended, and all requirements of the SEC, granting unto said attorneys-in-fact and agents, full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully to all intents and purposes as he or she might or could do in person, ratifying and confirming all that said attorneys-in-fact and agents or his or her substitutes or substitute, may lawfully do or cause to be done by virtue hereof.

This Offering Statement has been signed by the following persons, in the capacities, and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| */s/ Dominique Kwong* | Chief Executive Officer and Director | July 22, 2025 |
| Dominique Kwong | (Principal Executive Officer) |  |
| */s/ Baljinder Bhullar* | Chief Financial Officer and Director | July 22, 2025 |
| Baljinder Bhullar | (Principal Financial Officer and Principal Accounting Officer) |  |
| */s/ Karan Sodhi* | Director | July 22, 2025 |
| Karan Sodhi |  |  |
| */s/ Shashi Tripathi* | Director | July 22, 2025 |
| Shashi Tripathi |  |  |
| */s/ Melanie Figueroa* | Director | July 22, 2025 |
| Melanie Figueroa |  |  |

---

## Ex1A-4

**Exhibit 4.1**

THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "**ACT**"), OR ANY STATUTES OR REGULATIONS OF NON-U.S. JURISDICTIONS OR ANY STATE SECURITIES OR BLUE SKY LAWS, AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND APPLICABLE STATE SECURITIES OR BLUE SKY LAWS. ALTHOUGH AN OFFERING CIRCULAR ON FORM 1-A FOR A TIER II OFFERING HAS BEEN FILED AND QUALIFIED WITH THE SECURITIES AND EXCHANGE COMMISSION (THE "**SEC**"), THAT OFFERING STATEMENT DOES NOT INCLUDE THE SAME INFORMATION THAT WOULD BE INCLUDED IN A REGISTRATION STATEMENT UNDER THE ACT.

**<u>SUBSCRIPTION AGREEMENT</u>**

THIS SUBSCRIPTION AGREEMENT (this "**Agreement**" or this "**Subscription**") is made and entered into as of __________ __, 2025, by and between the undersigned (the "**Subscriber**") and Damon Inc., a corporation formed under the laws of the Province of British Columbia, Canada (the "**Company**"), with reference to the facts set forth below.

WHEREAS, subject to the terms and conditions of this Agreement, the Subscriber wishes to irrevocably subscribe for and purchase (subject to acceptance of such subscription by the Company) common shares without par value in the capital of the Company (each, a "**Common Share**" and collectively, the "**Common Shares**") as more particularly set forth in Section 1 and on the signature page hereto, offered pursuant to that certain Offering Circular, incorporated into the Company's Form 1-A, filed and qualified with the SEC effective on __________ __, 2025 (the "**Offering Circular**") of the Company.

NOW, THEREFORE, in order to implement the foregoing, and in consideration of the mutual representations, warranties, covenants and agreements contained herein and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

1. <u>Subscription for Common Shares</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 Subject to the express terms and conditions of this Agreement, the Subscriber hereby irrevocably subscribes
for and agrees to purchase the number of Common Shares, at a price of US$0.10 per Common Share (the "**Purchase** "), plus
an investor processing fee equal to two percent (2%), for the aggregate purchase price (the "**Purchase Price**") set forth
on the signature page to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 The offering of Common Shares is described in the Offering Circular, which is available at  **<u>https://www.invest.damon.com/</u>** (the "**Site** "), as well as on the EDGAR website of the SEC. Please read this Agreement and the Offering Circular. While
they are subject to change, as described below, the Company advises the Subscriber to print and retain a copy of these documents for the
Subscriber's records. By signing below, the Subscriber agrees to the following terms and consents to receive communications relating
to the Common Shares electronically from the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 The Company has the right to reject this Subscription in whole or in part for any reason. The Subscriber
may not cancel, terminate or revoke this Agreement, which, in the case of an individual, shall survive the Subscriber's death or
disability and shall be binding upon the Subscriber and the Subscriber's heirs, trustees, beneficiaries, executors, personal or
legal administrators or representatives, successors, transferees and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 Once the Subscriber makes a funding commitment to purchase Common Shares, such commitment shall be irrevocable
until the Common Shares are issued, the Purchase is rejected by the Company, or the Company otherwise determines not to consummate the
transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 Upon acceptance of this Subscription by the Company, the Subscriber will become a shareholder of the Company
as a holder of Common Shares.

2. <u>Purchase of Common Shares</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 The Subscriber understands that the Purchase Price is payable with the execution and submission of this
Agreement, and accordingly, will submit payment in the amount of the Purchase Price to the Company's non-interest bearing escrow
account with Enterprise Bank & Trust, acting as escrow agent for the Company, by certified check, draft, wire or ACH of immediately
available funds drawn on a United States bank in accordance with the banking instructions to be provided to the Subscriber upon execution
and delivery of this Agreement to the Company pursuant to the online platform as more fully described in the Offering Circular.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 If the Company returns the Subscriber's Purchase Price to the Subscriber, the Company will not owe
or pay any interest to the Subscriber.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 If this Subscription is accepted by the Company, the Subscriber agrees to comply fully with the terms
of this Agreement, the Common Shares, and all other applicable documents or instruments of the Company. The Subscriber further agrees
to execute any other necessary documents or instruments in connection with this Subscription and the Subscriber's purchase of the
Common Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 In the event that this Subscription is rejected in full or the offering is terminated, payment made by
the Subscriber for the Common Shares will be refunded to the Subscriber without interest and without deduction, and all of the obligations
of the Subscriber hereunder shall terminate. To the extent that this Subscription is rejected in part, the Company shall refund to the
Subscriber any payment made by the Subscriber to the Company with respect to the rejected portion of this Subscription without interest
and without deduction, and all of the obligations of Subscriber hereunder shall remain in full force and effect except for those obligations
with respect to the rejected portion of this Subscription, which shall terminate.

3. <u>Investment Representations, Warranties and Covenants of Subscriber</u>. The Subscriber represents,
warrants and covenants to the Company as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 The information that the Subscriber has furnished herein, which has been completed by the Subscriber and
submitted herewith to the Company, and any other information furnished by the Subscriber to the Company regarding whether the Subscriber
qualifies as (a) an "accredited investor" as that term is defined in Rule 501(a) under Regulation D ()"**Regulation D** ")
promulgated under the U.S. Securities Act of 1933, as amended (the "**Act** "), which definition is set forth on Annex A
attached hereto, and/or (b) a "qualified purchaser" as that term is defined in Regulation A promulgated under the Act,
is correct and complete as of the date of this Agreement, and will be correct and complete as at the time (the "**Closing Time** "),
if any, that the Company accepts this Subscription.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 The Subscriber shall immediately notify the Company of any change in any statement made herein prior to
the Subscriber's receipt of the Company's acceptance of this Subscription, including, without limitation, the Subscriber's
status as an "accredited investor" and/or "qualified purchaser."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 The representations and warranties made by the Subscriber may be fully relied upon by the Company and
by any investigating party relying on them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 The Subscriber (a) is an "accredited investor" as that term is defined in Rule 501(a)
under Regulation D, which definition is set forth on Annex A attached hereto, or (b) **if the Subscriber is not an "accredited investor" as that term is defined in Rule 501 under Regulation D, the amount of Common Shares being purchased by the Subscriber does not exceed 10% of the greater of the Subscriber's annual income or net worth (for natural persons), or 10% of the greater of the Subscriber's annual revenue or net assets at fiscal yearend (for non-natural persons)**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 The Subscriber agrees to provide to the Company any additional documentation the Company may reasonably
request, any other documentation as may be required by the Company to form a reasonable basis that the Subscriber qualifies as an "accredited
investor" as that term is defined in Rule 501(a) under Regulation D promulgated under the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 The Subscriber, if an entity, is, and shall at all times while it holds Common Shares remain, duly organized,
validly existing and in good standing under the laws of the state or other jurisdiction of the United States (or non-U.S. country) of
its incorporation or organization, having full power and authority to own its properties and to carry on its business as conducted. The
Subscriber, if a natural person, is twenty-one (21) years of age (or eighteen (18) years of age in jurisdictions with such applicable
age limit) or older and competent to enter into a contractual obligation. The principal place of business or principal residence of the
Subscriber is as shown on the signature page to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 The Subscriber has the requisite power and authority to deliver this Agreement, perform his, her or its
obligations set forth herein, and consummate the transactions contemplated hereby. The Subscriber has duly executed and delivered this
Agreement and has obtained the necessary authorization to execute and deliver this Agreement and to perform his, her or its obligations
herein and to consummate the transactions contemplated hereby. This Agreement, assuming the due execution and delivery hereof by the Company,
is a legal, valid and binding obligation of the Subscriber enforceable against the Subscriber in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 At no time has it been expressly or implicitly represented, guaranteed or warranted to the Subscriber
by the Company or any other person that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A percentage of profit and/or amount or type of gain or other consideration will be realized as a result
of this investment; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The past performance or experience on the part of the Company and/or its officers or directors in any
way indicates the predictable or probable results of the ownership of Common Shares or the overall Company venture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9 The Subscriber has received and reviewed this Agreement and the Offering Circular. The Subscriber and/or
the Subscriber's advisors, who are not affiliated with and not compensated directly or indirectly by the Company or an affiliate
thereof, have such knowledge and experience in business and financial matters as will enable them to utilize the information which they
have received regarding the Company and its business to evaluate the merits and risks of this investment, to make an informed investment
decision and to protect the Subscriber's own interests in connection with the Purchase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10 The Subscriber understands that the Common Shares being purchased are a speculative investment which involves
a substantial degree of risk of loss of the Subscriber's entire investment in the Common Shares, and the Subscriber understands
and is fully cognizant of the risk factors related to the purchase of the Common Shares. The Subscriber has read, reviewed and understood
the risk factors set forth in the Offering Circular.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11 The Subscriber understands that any forecasts or predictions as to the Company's performance are
based on estimates, assumptions and forecasts that the Company believes to be reasonable but that may prove to be materially incorrect,
and no assurance is given that actual results will correspond with the results contemplated by the various forecasts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12 The Subscriber is able to bear the economic risk of an investment in the Common Shares being purchased
and, without limiting the generality of the foregoing, is able to hold the Common Shares purchased for an indefinite period of time. The
Subscriber has adequate means to provide for the Subscriber's current needs and personal contingencies and has a sufficient net
worth to sustain the loss of the Subscriber's entire investment in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.13 The Subscriber has had an opportunity to ask questions of the Company or anyone acting on behalf of the
Company and to receive answers concerning the terms of this Agreement and the Common Shares, as well as information about the Company
and its business generally, and to obtain any additional information that the Company possesses or can acquire without unreasonable effort
or expense, that is necessary to verify the accuracy of the information contained in this Agreement. Further, all such questions have
been answered to the full satisfaction of the Subscriber.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.14 The Subscriber understands that no state or federal authority in the U.S. or authority outside the U.S.
has scrutinized the terms of this Agreement or the Common Shares offered pursuant hereto, has made any finding or determination relating
to the fairness of an investment of the Common Shares, or has recommended or endorsed the Common Shares, and that the Common Shares have
not been registered under the Act or any state securities laws, in reliance upon exemptions from registration thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.15 The Subscriber is subscribing for and purchasing the Common Shares without being furnished any offering
materials, other than the Offering Circular and this Agreement with the Annexes hereto, and such other related documents, agreements or
instruments as may be attached to the foregoing documents as exhibits or supplements thereto, or as the Subscriber has otherwise requested
from the Company in writing, and without receiving any representations or warranties from the Company or its agents and representatives
other than the representations and warranties contained in said documents, and is making this investment decision solely in reliance upon
the information contained in said documents and upon any independent investigation made by the Subscriber or the Subscriber's advisors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.16 The Subscriber's true and correct full legal name, address of residence (or, if an entity, principal
place of business), phone number, electronic mail address, United States taxpayer identification number, if any, and other contact information
are accurately provided on the signature page hereto. The Subscriber is currently a bona fide resident of the state or jurisdiction set
forth in the current address provided to the Company. The Subscriber has no present intention of becoming a resident of any other state
or jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.17 The Subscriber is subscribing for and purchasing the Common Shares as a principal and solely for the Subscriber's
own account, for investment purposes only, and not with a view toward or in connection with resale, distribution (other than to its shareholders
or members, if any), subdivision or fractionalization thereof. The Subscriber has no agreement or other arrangement, formal or informal,
with any person or entity to sell, transfer or pledge any part of the Common Shares, or which would guarantee the Subscriber any profit,
or insure against any loss with respect to the Common Shares, and the Subscriber has no plans to enter into any such agreement or arrangement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.18 The execution and delivery of this Agreement, the consummation of the transactions contemplated hereby
and the performance of the obligations hereunder will not conflict with or result in any violation of or default under any provision of
any other agreement or instrument to which the Subscriber is a party or any license, permit, franchise, judgment, order, writ or decree,
or any statute, rule or regulation, applicable to the Subscriber. The Subscriber confirms that the consummation of the transactions contemplated
herein, including, but not limited to, the Subscriber's Purchase, will not violate any foreign law and that such transactions are
lawful in the Subscriber's country of citizenship and residence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.19 The Company's intent is to comply with all applicable federal, state and local laws designed to
combat money laundering and similar illegal activities, including the provisions of the *Proceeds of Crime (Money Laundering) and Terrorist Financing Act* (Canada) (the "**PCMLTF Act**") and the United States Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (the "**PATRIOT Act** "). The Subscriber agrees
that, if at any time it is discovered that the Company has been or may be found to have violated the PCMLTF Act, the PATRIOT Act or any
other anti-money laundering laws or regulations as a result of the Purchase or receipt of the Purchase Price, or if otherwise required
by applicable laws or regulations, the Company may undertake appropriate actions, and the Subscriber agrees to cooperate with such actions,
to ensure compliance with such laws or regulations, including, but not limited to, segregation and/or redemption of the Subscriber's
interest in the Common Shares. The Subscriber agrees to provide any and all documentation requested by the Company to ensure compliance
with the PCMLTF Act, the PATRIOT Act or other laws or regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.20 The Subscriber confirms that the Subscriber has been advised to consult with the Subscriber's independent
attorney regarding legal matters concerning the Company, and to consult with independent tax advisers regarding the tax consequences of
investing in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.21 The Subscriber acknowledges that the purchase price per Common Share to be sold in this offering was set
by the Company on the basis of the Company's internal valuation, and no warranties are made as to value. The Subscriber further
acknowledges that future offerings of securities of the Company may be made at lower valuations, with the result that the Subscriber's
investment will bear a lower valuation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.22 As used in this Agreement, "**United States**" or "**U.S.**" means, as the
context requires, the United States of America, its territories and possessions, any state of the United States, and/or the District of
Columbia.

4. <u>Additional Investment Representations, Warranties and Covenants of Canadian Subscriber</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 If the Subscriber is resident in Canada, received an offer of Common Shares in Canada, or executed or
delivered this Agreement in Canada (sometimes referred to herein as a "**Canadian Subscriber** "), the Subscriber:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) acknowledges and agrees that the Company will be relying on the "accredited investor" exemption
under Section 2.3 of National Instrument 45-106 – *Prospectus Exemptions* ()"**NI 45-106** "), or Section 73.3
of the *Securities Act* (Ontario), to offer and sell the Common Shares to the Subscriber;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) must complete, sign and deliver (i) Annex B attached hereto (the "**Canadian Accredited Investor Status Certificate** "), and (ii) Exhibit I to Annex B, if subscribing under categories (j), (k), or (l) of the Canadian Accredited
Investor Status Certificate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) agrees to provide to the Company any additional documentation the Company may reasonably request, including,
in addition to the Canadian Accredited Investor Status Certificate attached hereto as Annex B, any other documentation as may be required
by the Company to form a reasonable basis that the Subscriber qualifies as an "accredited investor" under NI 45-106 or section
73.3 of the *Securities Act* (Ontario), as applicable.

5. <u>Additional Investment Representations, Warranties and Covenants of Subscriber Resident in an International Jurisdiction</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 If the Subscriber is resident in country other than Canada or the United States (an "**International Jurisdiction** "), the Subscriber:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) must complete, sign and deliver Annex C attached hereto (the "**International Investor Certificate** ");
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) agrees to provide to the Company any additional documentation the Company may reasonably request, including,
in addition to the International Investor Certificate attached hereto as Annex C, any other documentation as may be required by the Company
to form a reasonable basis that offer and sale of the Common Shares to the Subscriber may be consummated in compliance with all applicable
securities laws and regulations of the International Jurisdiction.

6. <u>Indemnification</u>. The representations, warranties and covenants made by the Subscriber herein shall
survive the closing of the Purchase. The Subscriber agrees to indemnify and hold harmless the Company and its affiliates and each of their
respective officers, directors, employees, agents and representatives, and each other person, if any, who controls the Company within
the meaning of Section 15 of the Act, against any and all loss, liability, claim, damage and expense whatsoever (including, but not limited
to, any and all reasonable attorneys' fees, including attorneys' fees on appeal) and expenses reasonably incurred in investigating,
preparing or defending against any false representation or warranty or breach or failure by the Subscriber to comply with any covenant
or agreement made by the Subscriber herein or in any other document furnished by the Subscriber to any of the foregoing in connection
with this transaction.

7. <u>No Advisory Relationship</u>. The Subscriber acknowledges and agrees that the purchase and sale of
the Common Shares pursuant to this Agreement is an arms-length transaction between the Subscriber and the Company. The Company is not
acting as the Subscriber's agent or fiduciary in connection with the Purchase. The Company has not provided the Subscriber with
any legal, accounting, regulatory or tax advice with respect to the Common Shares, and the Subscriber has consulted his, her or its own
respective legal, accounting, regulatory and tax advisors to the extent the Subscriber has deemed appropriate.

8. <u>Bankruptcy</u>. In the event that the Subscriber files or enters a bankruptcy, insolvency or other
similar proceeding, the Subscriber agrees to use its best efforts to avoid the Company being named as a party or otherwise involved in
the proceeding. Furthermore, this Agreement should be interpreted so as to prevent, to the maximum extent permitted by applicable law,
any bankruptcy trustee, receiver or debtor-in-possession from asserting, requiring or seeking that (i) the Subscriber be allowed by the
Company to return any part of the Common Shares to the Company for a refund, or (ii) the Company be mandated or ordered to redeem or withdraw
any part of the Common Shares held or owned by the Subscriber.

9. <u>Resale Restrictions and Legends</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 The Subscriber understands, acknowledges and agrees that the Company, and the offer and sale of Common
Shares contemplated by this Agreement, are subject to the jurisdiction of the British Columbia Securities Commission (the "**BCSC** "),
and that the first trade of any Common Shares by the undersigned in Canada or through a market in Canada would be a "distribution"
under applicable Canadian provincial securities laws, and would have to be qualified by a prospectus filed and duly receipted by the BCSC
and any other Canadian securities administrator having jurisdiction with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 If the Subscriber is a Canadian Subscriber, the Subscriber understands, acknowledges and agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the certificates or other instruments representing the Common Shares will bear the following legend (the
" **MI 51-105 Legend** "):

"**The holder of this security must not trade the security in or from a jurisdiction of Canada unless the conditions in section 13 of Multilateral Instrument 51-105 *Issuers Quoted in the U.S. Over-the-Counter Markets* are met.**"; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Subscriber must not trade any of the Common Shares unless the following conditions prescribed by section
13 of Multilateral Instrument 51-105 – *Issuers Quoted in the U.S. Over-the-Counter Markets*, as adopted by the BCSC ()"**MI 51-105** "), are met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the holding period prescribed by MI 51-105, described below (the "**Holding Period** "),
has expired;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the number of Common Shares that the Subscriber proposes to trade, plus the number of Common Shares, if
any, that the Subscriber has traded in the preceding 12-month period, must not exceed 5% of the Company's outstanding Common Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the trade must be made through an investment dealer registered in a jurisdiction of Canada;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the investment dealer must execute the trade through any of the over-the-counter markets in the United
States of America (including the OTCID Basic Market);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) no unusual effort is made to prepare the market or create a demand for the Common Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) no extraordinary commission or other consideration is paid to a person for the trade; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) if the Subscriber is an insider of the Company, the Subscriber must reasonably believe that the Company
is not in default of applicable securities legislation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Holding Period prescribed by MI 51-105 is measured from the date on which the Subscriber acquired
the subject Common Shares and is (i) six months if the Subscriber is a "control person" of the Company, and (ii) four months
for all other Subscribers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) as defined in the *Securities Act* (British Columbia), "**control person**" means

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a person who holds a sufficient number of the voting rights attached to all outstanding voting securities
of an issuer, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) each person in a combination of persons, acting in concert by virtue of an agreement, arrangement, commitment
or understanding, which holds in total a sufficient number of the voting rights attached to all outstanding voting securities of an issuer

to affect materially the control of the issuer, and, where a person or combination of persons holds more than 20% of the voting rights attached to all outstanding voting securities of an issuer, the person or combination of persons shall, in the absence of evidence to the contrary, be deemed to hold a sufficient number of the voting rights to affect materially the control of the issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 If the Subscriber is a resident of the United States or an International Jurisdiction, did not receive
any offer of Common Shares in Canada, and did not execute or deliver this Agreement in Canada, then, to induce the Company to issue the
Common Shares to the undersigned without an MI 51-105 Legend, the Subscriber covenants and undertakes not to sell any Common Shares to
a person in Canada or through a market in Canada.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 If the Subscriber is a resident of an International Jurisdiction, it is understood that the certificates
or other instruments evidencing the Common Shares will bear a legend required by the applicable securities laws and regulations of such
International Jurisdiction.

10. <u>Privacy Legislation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 The Subscriber acknowledges and consents to the fact that the Company is collecting the Subscriber's (and
any beneficial purchaser for which the Subscriber is contracting hereunder) personal information (as that term is defined under applicable
privacy legislation, including, without limitation, the *Personal Information Protection and Electronic Documents Act* (Canada) and
any other applicable similar replacement or supplemental provincial or federal legislation or laws in effect from time to time) for the
purpose of completing the Subscriber's subscription.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 The Subscriber acknowledges and consents to the Company retaining the personal information for so long
as permitted or required by applicable law or business practices. The Subscriber further acknowledges and consents to the fact that the
Company may be required to provide regulatory authorities any personal information provided by the Subscriber respecting itself (and any
beneficial purchaser for which the Subscriber is contracting hereunder). The Subscriber represents and warrants that it has the authority
to provide the consents and acknowledgements set out in this paragraph on behalf of all beneficial purchasers for which the Subscriber
is contracting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 In addition to the foregoing, the Subscriber agrees and acknowledges that the Company may use and disclose
the Subscriber's personal information, or that of each beneficial purchaser for whom the Subscriber are contracting hereunder, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for internal use with respect to managing the relationships between and contractual obligations of the
Company and the Subscriber or any beneficial purchaser for whom the Subscriber is contracting hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for use and disclosure to the Company's transfer agent and registrar;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) for use and disclosure for income tax related purposes, including without limitation, where required by
law, disclosure to Canada Revenue Agency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) disclosure to securities regulatory authorities and other regulatory bodies with jurisdiction with respect
to reports of trade and similar regulatory filings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) disclosure to a governmental or other authority to which the disclosure is required by court order or
subpoena compelling such disclosure and where there is no reasonable alternative to such disclosure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) disclosure to professional advisers of the Company in connection with the performance of their professional
services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) disclosure to any person where such disclosure is necessary for legitimate business reasons and is made
with the Subscriber's prior written consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) disclosure to a court determining the rights of the parties under this Subscription Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) for use and disclosure as otherwise required or permitted by law.

11. <u>Consent to Electronic Delivery</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 The Subscriber hereby agrees that the Company may deliver all SEC reports, including offering circulars,
exhibits, supplements, U.S., Canadian or other non-U.S. legends, notices, financial statements, valuations, reports, reviews, analyses
or other materials, and any and all other documents, information and communications concerning the affairs of the Company and its investments,
including, without limitation, information about the investment required or permitted to be provided to the Subscriber with respect to
the Common Shares or hereunder, by means of e-mail or by posting on an electronic message board or by other means of electronic communication.
The Subscriber hereby consents to receive from the Company electronically all documents, communications, notices, contracts, and agreements
arising from or relating in any way to the Subscriber's or the Company's rights, obligations or services under this Agreement
(each, a "**Disclosure** "). The decision to do business with the Company electronically is the Subscriber's decision.
This Agreement informs the Subscriber of its rights concerning Disclosures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 The Subscriber's consent to receive Disclosures and transact business electronically, and the Company's
agreement to do so, applies to any transactions to which such Disclosures relate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3 Before the Subscriber decides to do business electronically with the Company, the Subscriber should consider
whether he, she or it has the required hardware and software capabilities described below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4 In order to access and retain Disclosures electronically, the Subscriber must satisfy the following computer
hardware and software requirements: access to the Internet; an e-mail account and related software capable of receiving e-mail through
the Internet; a web browser which is SSL-compliant and supports secure sessions; and hardware capable of running this software.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5 The Subscriber agrees to keep the Company informed of any change in the Subscriber's e-mail or home
mailing address. If the Subscriber's registered e-mail address changes, the Subscriber must notify the Company of the change by
sending an e-mail to Bal Bhullar, the CFO of the Company at bal@damon.com. The Subscriber also agrees to update the Subscriber's
registered residence address and telephone number on file with the Company if they change. The Subscriber will print a copy of this Agreement
for his, her or its records, and the Subscriber agrees and acknowledges that the Subscriber can access, receive and retain all Disclosures
electronically sent via e-mail.

12. <u>Limitations on Damages</u>. IN NO EVENT SHALL THE COMPANY BE LIABLE TO THE SUBSCRIBER FOR ANY LOST
PROFITS OR SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, EVEN IF INFORMED OF THE POSSIBILITY OF SUCH DAMAGES. THE FOREGOING SHALL BE INTERPRETED
AND HAVE EFFECT TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, RULE OR REGULATION.

13. <u>Miscellaneous Provisions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1 This Agreement is to be construed in accordance with and governed by the laws of the Province of British
Columbia, Canada, without giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other
than the laws of the Province of British Columbia to the rights and duties of the parties. The parties hereby irrevocably and unconditionally
(a) submit to the jurisdiction of the courts of British Columbia for the purpose of any suit, action or other proceeding arising out of
or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding arising out of or based upon this Agreement
except in the courts of British Columbia, and (c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise,
in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that
its property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum,
that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in
or by such court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2 All notices and communications to be given or otherwise made to the Subscriber shall be deemed to be sufficient
if sent by electronic mail to such address as set forth for the Subscriber in the records of the Company (or that the Subscriber submitted
to the Company). The Subscriber shall send all notices or other communications required to be given hereunder via e-mail to Bal Bhullar
at bal@damon.com (with a copy to be sent concurrently via prepaid certified mail to: Damon Inc., 4601 Canada Way, Suite #402, Burnaby,
British Columbia, Canada V5G 4X7, Attention: Bal Bhullar, Chief Financial Officer. Any such notice or communication shall be deemed to
have been delivered and received on the first business day following that on which the electronic mail has been sent (assuming that there
is no error in delivery). As used in this Section, "**business day**" shall mean any day other than a day on which banking
institutions in the Province of British Columbia, Canada, are legally closed for business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3 This Agreement, and the rights, obligations and interests of the Subscriber hereunder, may not be assigned,
transferred or delegated by the Subscriber without the prior written consent of the Company. Any such assignment, transfer or delegation
in violation of this Section shall be null and void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4 The parties agree to execute and deliver such further documents and information as may be reasonably required
in order to effectuate the purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.5 Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived
(either generally or in a particular instance and either retroactively or prospectively), only with the written consent of each of the
parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.6 If one or more provisions of this Agreement are held to be unenforceable under applicable law, rule or
regulation, such provision shall be excluded from this Agreement and the balance of the Agreement shall be interpreted as if such provision
were so excluded and shall be enforceable in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.7 In the event that either party hereto shall commence any suit, action or other proceeding to interpret
this Agreement, or determine to enforce any right or obligation created hereby, then such party, if it prevails in such action, shall
recover its reasonable costs and expenses incurred in connection therewith, including, but not limited to, reasonable attorneys'
fees and expenses and costs of appeal, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.8 This Agreement and the documents referred to herein constitute the entire agreement among the parties
and shall constitute the sole documents setting forth terms and conditions of the Subscriber's contractual relationship with the
Company with regard to the matters set forth herein. This Agreement supersedes any and all prior or contemporaneous communications, whether
oral, written or electronic, between the Company and the Subscriber.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.9 This Agreement may be executed in any number of counterparts, or facsimile counterparts, each of which
shall be deemed an original, and all of which together shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.10 The titles and subtitles used in this Agreement are used for convenience only and are not to be considered
in construing or interpreting this Agreement. The singular number or masculine gender, as used herein, shall be deemed to include the
plural number and the feminine or neuter genders whenever the context so requires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.11 The parties acknowledge that there are no third-party beneficiaries of this Agreement.

[*The rest of this page left intentionally blank. The signature page follows.*]

**SUBSCRIPTION AGREEMENT SIGNATURE PAGE**

The undersigned, desiring to purchase Common Shares of Damon Inc. by executing this signature page, hereby executes, adopts and agrees to all terms, conditions and representations of the Subscription Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;(a) EITHER (i) The undersigned is an accredited investor (as that term is defined in Regulation D under the Securities Act because the undersigned meets the criteria set forth in the following paragraph(s) of Appendix A attached hereto: ☐

OR (ii) The amount set forth in paragraph (b) above (together with any previous investments in the Securities pursuant to this offering) does not exceed 10% of the greater of the undersigned's net worth or annual income for all investments in this offering. ☐

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Securities being subscribed for will be owned by, and should be recorded on the Corporation's books
as follows:

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Full legal name of Subscriber (including middle name(s), for individuals):<br>_________________________________<br> (Name of Subscriber) By:<br> (Authorized Signature)<br>_________________________________<br> (Official Capacity or Title, if the Subscriber is not an individual)<br>_________________________________<br> (Name of individual whose signature appears above if different than the name of the Subscriber printed above.)<br>__________________________________<br> __________________________________<br> (Subscriber's Residential Address, including Province/State and Postal/Zip Code)<br>__________________________________<br> Taxpayer Identification Number<br>__________________________________<br> (Telephone Number)<br>**<u>(Offline Investor)</u>**<br> (E-Mail Address):<br> ________________________________<br>| &nbsp;&nbsp;&nbsp; Number of securities: **Common Shares**<br> Aggregate Subscription Price: **$_____________ USD**<br> **<u> </u>**<br> **<u>TYPE OF OWNERSHIP:</u>**<br> *If the Subscriber is individual*:<br> ☐ Individual<br> ☐ Joint Tenant<br> ☐ Tenants in Common<br> ☐ Community Property<br>If interests are to be jointly held:<br>Name of the Joint Subscriber:<br>*If the Subscriber is not an individual*:<br>(type of entity):___________________________<br>Social Security Number of the Joint Subscriber:<br>Check this box if the securities will be held in a custodial account: ☐<br>Type of account:<br>EIN of account:<br>Address of account provider:<br>__________________________________<br>__________________________________<br>|

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[*Signature Page to Subscription Agreement*]

**ACCEPTANCE**

 

The Company hereby accepts the subscription as set forth above on the terms and conditions contained in this Subscription Agreement.

Dated: __________________, 202__.

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| | |
|:---|:---|
| **Damon Inc.** | **Damon Inc.** |
| By: |  |
| Name: | Baljinder Bhullar |
| Title: | CFO |

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[*Counterpart Signature Page to Subscription Agreement*]

**<u> </u>**

**<u>ANNEX A</u>**

**<u>U.S. ACCREDITED INVESTOR CERTIFICATE</u>**

The Subscriber hereby represents and warrants that that the Subscriber is an Accredited Investor, as defined by Rule 501 of Regulation D under the Securities Act of 1933, and Subscriber meets at least one (1) of the following criteria (initial all that apply) or that Subscriber is an unaccredited investor and meets none of the following criteria (initial as applicable):

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|:---|:---|
| ______ | A bank, as defined in Section 3(a)(2) of the U.S. Securities Act; a savings and loan association or other institution as defined in Section 3(a)(5)(A) of the U.S. Securities Act, whether acting in its individual or fiduciary capacity; a broker or dealer registered pursuant to Section 15 of the United States Securities Exchange Act of 1934; An insurance company as defined in Section 2(a)(13) of the U.S. Securities Act; An investment company registered under the United States Investment Company Act of 1940; or A business development company as defined in Section 2(a)(48) of that Act; a Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301 (c) or (d) of the United States Small Business Investment Act of 1958;A plan established and maintained by a state, its political subdivisions or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of US$5,000,000; or an employee benefit plan within the meaning of the United States Employee Retirement Income Security Act of 1974, as amended, in which the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank, savings and loan association, insurance company or registered investment adviser, or an employee benefit plan with total assets in excess of U.S. $5,000,000 or, if a self directed plan, with investment decisions made solely by persons that are Accredited Investors; |

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______ A private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940;

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| | |
|:---|:---|
| ______ | The Subscriber is either (i) a corporation, (ii) an organization described in Section 501(c)(3) of the Internal Revenue Code, (iii) a trust, or (iv) a partnership, in each case not formed for the specific purpose of acquiring the securities offered, and in each case with total assets in excess of US$5,000,000; |

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______ a director, executive officer or general partner of the issuer of the securities being offered or sold, or any director, executive officer, or general partner of a general partner of that issuer;

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| | |
|:---|:---|
| ______ | The Subscriber is a natural person (individual) whose own net worth, taken together with the net worth of the Subscriber's spouse or spousal equivalent, exceeds US$1,000,000, excluding equity in the Subscriber's principal residence unless the net effect of his or her mortgage results in negative equity, the Subscriber should include any negative effects in calculating his or her net worth; |

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| | |
|:---|:---|
| ______ | The Subscriber is a natural person (individual) who had an individual income in excess of US$200,000 (or joint income with the Subscriber spouse or spousal equivalent in excess of US$300,000) in each of the two previous years and who reasonably expects a gross income of the same this year; |

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-A-1-

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|:---|:---|
| ______ | A trust, with total assets in excess of US$5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) of the U.S. Securities Act; |

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______ The Subscriber is an entity as to which all the equity owners are Accredited Investors. If this paragraph is initialed, the Subscriber represents and warrants that the Subscriber has verified all such equity owners' status as an Accredited Investor.

______ a natural person who holds one of the following licenses in good standing: General Securities Representative license (Series 7), the Private Securities Offerings Representative license (Series 82), or the Investment Adviser Representative license (Series 65);

______ An investment adviser registered pursuant to Section 203 of the Investment Advisers Act of 1940 or registered pursuant to the laws of a state; or

______ An investment adviser relying on the exemption from registering with tthe SEC under Section 203(l) or (m) of the Investment Advisers Act of 1940; or

______ A rural business investment company as defined in Section 384A of the Consolidated Farm and Rural Development Act;

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| | |
|:---|:---|
| ______ | An entity, of a type not listed herein, not formed for the specific purpose of acquiring the securities offered, owning investments in excess of $5,000,000; |

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| | |
|:---|:---|
| ______ | A "family office," as defined in Rule 202(a)(11)(G)-1 under the Investment Advisers Act of 1940 (17 CFR 275.202(a)(11)(G)-1): (i) With assets under management in excess of $5,000,000,<br> (ii) That is not formed for the specific purpose of acquiring the securities offered, and<br> (iii) Whose prospective investment is directed by a person who has such knowledge and experience in financial and business matters that such family office is capable of evaluating the merits and risks of the prospective investment; |

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______ A "family client," as defined in rule 202(a)(11)(G)-1 under the Investment Advisers Act of 1940 (17 CFR 275.202(a)(11)(G)-1)), of a family office meeting the requirements in category 23 above and whose prospective investment in the issuer is directed by such family office as referenced above;

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| | |
|:---|:---|
| ______ | A natural person who is a "knowledgeable employee," as defined in rule 3c-5(a)(4) under the Investment Company Act of 1940 (17 CFR 270.3c-5(a)(4)), of the issuer of the securities being offered or sold where the issuer would be an investment company, as defined in Section 3 of such Act, but for the exclusion provided by either Section 3(c)(1) or Section 3(c)(7) of such Act; |

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| | |
|:---|:---|
| ______ | A corporation, Massachusetts or similar business trust, limited liability company or partnership, not formed for the specific purpose of acquiring the securities, with total assets of more than US$5 million; or |

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______ The Subscriber is not an Accredited Investor and does not meet any of the above criteria.

-A-2-

DATED: ________________________, 202__.

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| |
|:---|
| **SUBSCRIBER:** |
| (Print Full Name of Entity or Individual) |

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| | |
|:---|:---|
| By: |  |
|  | (Signature) |
| Name: |  |
|  | (If signing on behalf of entity) |
| Title: |  |
|  | (If signing on behalf of entity) |

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-A-3-

**<u>ANNEX B</u>**

**<u>CANADIAN Accredited Investor STATUS CERTIFICATE</u><br> (To be completed by Canadian subscribers)**

The categories listed herein contain certain specifically defined terms. If you are unsure as to the meanings of those terms, or are unsure as to the applicability of any category below, please contact your broker and/or legal advisor before completing this certificate.

**TO: DAMON INC. ("Damon").**

Capitalized terms used in this Annex B and defined in the Subscription Agreement to which this Annex B is attached have the meanings defined in the Subscription Agreement unless otherwise defined herein. All references to currency are to Canadian Dollars.

In connection with the purchase by the undersigned Subscriber of the Common Shares, the Subscriber, on its own behalf or on behalf of each Disclosed Principal for whom the Subscriber is acting (collectively, the "**Subscriber**"), hereby represents, warrants, covenants and certifies to Damon (and acknowledges that such parties and their respective counsel are relying thereon) that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Subscriber (or, if the Subscriber is contracting hereunder on behalf of a Disclosed Principal, such
Disclosed Principal) is resident in or otherwise subject to the securities laws of one of the Provinces of British Columbia, Alberta,
Saskatchewan, Manitoba, Ontario, Québec, New Brunswick, Nova Scotia, Prince Edward Island or Newfoundland and Labrador or the Territories
of Nunavut, Northwest Territories, or Yukon;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if the Subscriber is not contracting hereunder on behalf of a Disclosed Principal, the Subscriber is purchasing
the Common Shares as principal for its own account and not for the benefit of any other person or is deemed to be purchasing as principal
pursuant to NI 45-106 or Section 73.3 of the *Securities Act* (Ontario);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Subscriber (or the Disclosed Principal, as applicable) is an "accredited investor" within
the meaning of NI 45-106 or Section 73.3 of the *Securities Act* (Ontario) on the basis that the Subscriber fits within one of the
categories of an "accredited investor" reproduced below beside which the Subscriber has indicated the undersigned belongs
to such category;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Subscriber (or the Disclosed Principal, as applicable) was not created or used solely to purchase
or hold securities as an accredited investor as described in paragraph (m) below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) if the Subscriber is purchasing under category (j), (k) or (l) below, it has completed and signed Exhibit
I attached hereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) upon execution of this Annex C by the Subscriber, this Annex C shall be incorporated into and form a part
of the Subscription Agreement to which this Annex C is attached.

-B-1-

(PLEASE CHECK THE BOX OF THE APPLICABLE CATEGORY OF ACCREDITED INVESTOR AND PROVIDE ANY REQUIRED INFORMATION OUTLINED IN THE APPLICABLE CATEGORY, AS APPLICABLE)

☐ (a) (i) except in Ontario, a Canadian financial institution, or a Schedule III bank; or

☐ (ii) in Ontario, a financial institution that is (A) a bank listed in Schedule I, II or III of the *Bank Act* (Canada); (B) an association to which the *Cooperative Credit Associations Act* (Canada) applies or a central cooperative credit society for which an order has been made under subsection 473(1) of that Act; or (C) a loan corporation, trust company, trust corporation, insurance company, treasury branch, credit union, caisse populaire, financial services cooperative or credit union league or federation that is authorized by a statute of Canada or Ontario to carry on business in Canada or Ontario, as the case may be;

☐ (b) the Business Development Bank of Canada incorporated under the *Business Development Bank of Canada Act* (Canada);

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| | | |
|:---|:---|:---|
| ☐ | (c) | a subsidiary of any person or company referred to in paragraphs (a) or (b), if the person or company owns all of the voting securities of the subsidiary, except the voting securities required by law to be owned by directors of that subsidiary; |

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| | | |
|:---|:---|:---|
| ☐ | (d) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a person or company registered under the securities legislation of a jurisdiction (province or territory) of Canada as an adviser or dealer (or in Ontario, except as otherwise prescribed by the regulations under the *Securities Act* (Ontario));<br>Jurisdiction(s) registered ________________________________________<br> Categories of registration ________________________________________ |

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☐ (e) an individual registered under the securities legislation of a jurisdiction of Canada as a representative of a person referred to in paragraph (d);

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| | | |
|:---|:---|:---|
| ☐ | (e.1) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; an individual formerly registered under the securities legislation of a jurisdiction of Canada, other than an individual formerly registered solely as a representative of a limited market dealer under one or both of the *Securities Act* (Ontario) or the *Securities Act* (Newfoundland and Labrador);<br>Name of person with whom Subscriber is or was registered: _______________<br> Jurisdiction(s) registered: __________________________________________<br> Categories of registration:__________________________________________ |

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☐ (f) the Government of Canada or a jurisdiction (province or territory) of Canada, or any crown corporation, agency or wholly owned entity of the Government of Canada or a jurisdiction of Canada;

☐ (g) a municipality, public board or commission in Canada and a metropolitan community, school board, the Comité de gestion de la taxe scolaire de l'île de Montréal or an intermunicipal management board in Québec;

-B-2-

☐ (h) any national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction, or any agency of that government;

☐ (i) a pension fund that is regulated by either the Office of the Superintendent of Financial Institutions (Canada), a pension commission or similar regulatory authority of a jurisdiction (province or territory) of Canada;

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| | | |
|:---|:---|:---|
| ☐ | (j) | an individual who, either alone or with a spouse, beneficially owns financial assets having an aggregate realizable value that, before taxes, but net of any related liabilities, exceeds $1,000,000 **(completion of Exhibit "I" is also required)**; |

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| | | |
|:---|:---|:---|
| ☐ | (j.1) | an individual who beneficially owns financial assets having an aggregate realizable value that, before taxes but net of any related liabilities, exceeds $5,000,000; |

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| | | |
|:---|:---|:---|
| ☐ | (k) | an individual whose net income before taxes exceeded $200,000 in each of the two most recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the two most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year **(completion of Exhibit "I" is also required)**; |

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| | | |
|:---|:---|:---|
| ☐ | (l) | an individual who, either alone or with a spouse, has net assets of at least $5,000,000 **(completion of Exhibit "I" is also required)**; |

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| | | |
|:---|:---|:---|
| ☐ | (m) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a person, other than an individual or investment fund, that has net assets of at least $5,000,000 as shown on its most recently prepared financial statements;<br>Type of entity: _________________________________________________<br> Jurisdiction and date of formation: __________________________________ |

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| | | |
|:---|:---|:---|
| ☐ | (n) | an investment fund that distributes or has distributed its securities only to (i) a person that is or was an accredited investor at the time of the distribution, (ii) a person that acquires or acquired securities in the circumstances referred to in sections 2.10 [*Minimum amount investment*] or 2.19 [*Additional investment in investment funds*] of NI 45-106, or (iii) a person described in sub-paragraph (i) or (ii) that acquires or acquired securities under section 2.18 [*Investment fund reinvestment*] of NI 45-106; |

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☐ (o) an investment fund that distributes or has distributed securities under a prospectus in a jurisdiction of Canada for which the regulator or, in Québec, the securities regulatory authority, has issued a receipt;

-B-3-

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| | | |
|:---|:---|:---|
| ☐ | (p) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a trust company or trust corporation registered or authorized to carry on business under the *Trust and Loan Companies Act* (Canada) or under comparable legislation in a jurisdiction of Canada or a foreign jurisdiction, acting on behalf of a fully managed account managed by the trust company or trust corporation, as the case may be;<br> Jurisdiction(s) registered: _________________________________________<br> Registration number(s):___________________________________________ |
| ☐ | (q) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a person acting on behalf of a fully managed account managed by that person, if that person is registered or authorized to carry on business as an adviser or the equivalent under the securities legislation of a jurisdiction of Canada or a foreign jurisdiction;<br>Jurisdiction(s) registered or authorized: ______________________________<br> Categories of registration: _________________________________________ |
| ☐ | (r) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a registered charity under the *Income Tax Act* (Canada) that, in regard to the trade, has obtained advice from an eligibility adviser or an adviser registered under the securities legislation of the jurisdiction of the registered charity to give advice on the securities being traded;<br>Registration number(s) assigned to subscriber: _________________________<br> Name of eligibility advisor or registered advisor: _______________________<br> Jurisdiction(s) registered: __________________________________________<br> Categories of registration:__________________________________________ |
| ☐ | (s) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; an entity organized in a foreign jurisdiction that is analogous to any of the entities referred to in paragraphs (a) to (d) or paragraph (i) in form and function;<br>Jurisdiction organized: ____________________________________________<br> Type of entity: ___________________________________________________ |
| ☐ | (t) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a person in respect of which all of the owners of interests, direct, indirect or beneficial, except the voting securities required by law to be owned by directors, are persons that are accredited investors;<br>Name(s) of owners of interest: ______________________________________<br> Type of entity (if applicable): _______________________________________<br> Categories of accredited investor: ____________________________________ |

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-B-4-

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|:---|:---|:---|
| ☐ | (u) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; an investment fund that is advised by a person registered as an adviser or a person that is exempt from registration as an adviser;<br>Name of advisor: ________________________________________________<br> Jurisdiction(s) registered: __________________________________________<br> Categories of registration:__________________________________________<br> Basis of exemption: ______________________________________________ |
| ☐ | (v) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a person that is recognized or designated by the securities regulatory authority or, except in Ontario or Québec, the regulator as an accredited investor;<br>Jurisdiction(s) recognized or designated: ______________________________ |
| ☐ | (w) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a trust established by an accredited investor for the benefit of the accredited investor's family members of which a majority of the trustees are accredited investors and all of the beneficiaries are the accredited investor's spouse, a former spouse of the accredited investor or a parent, grandparent, brother, sister, child or grandchild of that accredited investor, of that accredited investor's spouse or of that accredited investor's former spouse; or<br>Name(s) of settlor: _______________________________________________<br> Name(s) of trustees: ______________________________________________<br> Categories of accredited investor: ___________________________________<br> Categories of beneficiaries: ________________________________________ |
| ☐ | (x) | in Ontario, such other persons or companies as may be prescribed by the regulations under the Securities Act (Ontario).<br>\*\*\*If checking this category (x), please provide a description of how this requirement is met. |

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*[Signature page to Annex B follows]*

 

-B-5-

The foregoing representations contained in this certificate are true and accurate as of the date of this certificate and will be true and accurate as of the Closing Time and the Subscriber acknowledges that this Canadian Accredited Investor Status Certificate is incorporated into and forms a part of the Subscription Agreement to which it is attached. If any such representations shall not be true and accurate prior to the Closing Time, the undersigned shall give immediate written notice of such fact to Damon prior to the Closing Time.

DATED: ________________________, 202__.

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| |
|:---|
| **SUBSCRIBER:** |
| (Print Full Name of Entity or Individual) |

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| | |
|:---|:---|
| By: |  |
|  | (Signature) |
| Name: |  |
|  | (If signing on behalf of entity) |
| Title: |  |
|  | (If signing on behalf of entity) |

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**<u>Definitions for Canadian Accredited Investor Status Certificate</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**bank**" means a bank named in Schedule I or II of the *Bank Act* (Canada);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Canadian financial institution**" means (i) an association governed by the *Cooperative Credit Associations Act* (Canada) or a central cooperative credit society for which an order has been made under section 473(1) of
that Act, or (ii) a bank, loan corporation, trust company, trust corporation, insurance company, treasury branch, credit union, caisse
populaire, financial services cooperative, or league that, in each case, is authorized by an enactment of Canada or a jurisdiction of
Canada to carry on business in Canada or a jurisdiction of Canada;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**company**" means any corporation, incorporated association, incorporated syndicate or
other incorporated organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**eligibility adviser**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a person that is registered as an investment dealer and authorized to give advice with respect to the
type of security being distributed, and

-B-6-

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in Manitoba, also means a lawyer who is a practicing member in good standing with a law society of a jurisdiction
of Canada or a public accountant who is a member in good standing of an institute or association of chartered accountants, certified general
accountants or certified management accountants in a jurisdiction of Canada provided that the lawyer or public accountant must not

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) have a professional, business or personal relationship with the issuer, or any of its directors, executive
officer, founders, or control persons, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) have acted for or been retained personally or otherwise as an employee, executive officer, director, associate
or partner of a person that has acted for or been retained by the issuer or any of its directors, executive officers, founders or control
persons within the previous 12 months;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**executive officer**" means, for an issuer, an individual who is: (i) a chair, vice-chair
or president, (ii) a vice-president in charge of a principal business unit, division or function including sales, finance or production,
or (iii) performing a policy-making function in respect of the issuer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**financial assets**" means (i) cash, (ii) securities, or (iii) a contract of insurance,
a deposit or an evidence of a deposit that is not a security for the purposes of securities legislation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**fully managed account**" means an account of a client for which a person makes the investment
decisions if that person has full discretion to trade in securities for the account without requiring the client's express consent
to a transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**investment fund**" has the same meaning as in National Instrument 81-106 *Investment Fund Continuous Disclosure*;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**person**" includes: (i) an individual, (ii) a corporation, (iii) a partnership, trust,
fund and an association, syndicate, organization or other organized group of persons whether incorporated or not, and (iv) an individual
or other person in that person's capacity as a trustee, executor, administrator or personal or other legal representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**related liabilities**" means (i) liabilities incurred or assumed for the purpose of
financing the acquisition or ownership of financial assets, or (ii) liabilities that are secured by financial assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Schedule III bank**" means an authorized foreign bank named in Schedule III of the *Bank Act* (Canada);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**spouse**" means, an individual who, (i) is married to another individual and is not
living separate and apart within the meaning of the *Divorce Act* (Canada), from the other individual, (ii) is living with another
individual in a marriage-like relationship, including a marriage-like relationship between individuals of the same gender, or (iii) in
Alberta, is an individual referred to in paragraph (i) or (ii), or is an adult interdependent partner within the meaning of the Adult
Interdependent Relationships Act (Alberta); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**subsidiary**" means an issuer that is controlled directly or indirectly by another issuer
and includes a subsidiary of that subsidiary.

In NI 45-106 a person or company is an affiliate of another person or company if one of them is a subsidiary of the other, or if each of them is controlled by the same person.

In NI 45-106 and except in Part 2 Division 4 (Employee, Executive Officer, Director and Consultant Exemption) of NI 45-106, a person (first person) is considered to control another person (second person) if (a) the first person, beneficially owns or directly or indirectly exercises control or direction over securities of the second person carrying votes which, if exercised, would entitle the first person to elect a majority of the directors of the second person, unless that first person holds the voting securities only to secure an obligation, (b) the second person is a partnership, other than a limited partnership, and the first person holds more than 50% of the interests of the partnership, or (c) the second person is a limited partnership and the general partner of the limited partnership is the first person.

____________

-B-7-

**<u>EXHIBIT I TO ANNEX C</u>**

**<u>FORM FOR INDIVIDUAL ACCREDITED INVESTORS</u>**

**(THIS EXHIBIT I TO ANNEX C IS TO BE COMPLETED BY ACCREDITED INVESTORS WHO ARE INDIVIDUALS SUBSCRIBING UNDER CATEGORIES (J), (K) OR (L) IN ANNEX C TO WHICH THIS EXHIBIT I IS ATTACHED. ALL REFERENCES TO CURRENCY ARE TO CANADIAN DOLLARS.)**

&nbsp;&nbsp; **WARNING!**<br>**This investment is risky. Don't invest unless you can afford to lose all the<br> money you pay for this investment.**<br>

---

| | |
|:---|:---|
| **SECTION 1 TO BE COMPLETED BY THE ISSUER OR SELLING SECURITY HOLDER** | **SECTION 1 TO BE COMPLETED BY THE ISSUER OR SELLING SECURITY HOLDER** |
| **1. About your investment** | **1. About your investment** |
| Type of securities: **Common Shares** | Issuer: Damon Inc. (the "**Issuer**") |
| Purchased from: Issuer. | Purchased from: Issuer. |
| **SECTIONS 2 TO 4 TO BE COMPLETED BY THE PURCHASER** | **SECTIONS 2 TO 4 TO BE COMPLETED BY THE PURCHASER** |
| **2. Risk acknowledgement** | **2. Risk acknowledgement** |
| This investment is risky. Initial that you understand that: | **Your <br> Initials** |
| **Risk of loss** - You could lose your entire investment of $_____________. *[Instruction: Insert the total dollar amount of the investment.]* |  |
| **Liquidity risk** - You may not be able to sell your investment quickly - or at all. |  |
| **Lack of information** - You may receive little or no information about your investment. |  |
| **Lack of advice** - You will not receive advice from the salesperson about whether this investment is suitable for you unless the salesperson is registered. The salesperson is the person who meets with, or provides information to, you about making this investment. To check whether the salesperson is registered, go to <u>www.aretheyregistered.ca</u>. |  |
| **3. Accredited investor status** | **3. Accredited investor status** |
| You must meet at least **one** of the following criteria to be able to make this investment. Initial the statement that applies to you. (You may initial more than one statement.) The person identified in section 6 is responsible for ensuring that you meet the definition of accredited investor. That person, or the salesperson identified in section 5, can help you if you have questions about whether you meet these criteria. | **Your <br> initials** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Your net income before taxes was more than $200,000 in each of the 2 most recent calendar years, and you expect it to be more than $200,000 in the current calendar year. (You can find your net income before taxes on your personal income tax return.) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Your net income before taxes combined with your spouse's was more than $300,000 in each of the 2 most recent calendar years, and you expect your combined net income before taxes to be more than $300,000 in the current calendar year. |  |

---

-B-8-

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Either alone or with your spouse, you own more than $1 million in cash and securities, after subtracting any debt related to the cash and securities. |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Either alone or with your spouse, you have net assets worth more than $5 million. (Your net assets are your total assets (including real estate) minus your total debt.) |  |
| **4. Your name and signature** | **4. Your name and signature** |
| By signing this form, you confirm that you have read this form and you understand the risks of making this investment as identified in this form. | By signing this form, you confirm that you have read this form and you understand the risks of making this investment as identified in this form. |
| First and last name (please print): | First and last name (please print): |
| Signature: | Date: |
| **SECTION 5 TO BE COMPLETED BY THE SALESPERSON** | **SECTION 5 TO BE COMPLETED BY THE SALESPERSON** |
| **5. Salesperson information** | **5. Salesperson information** |
| *[Instruction: The salesperson is the person who meets with, or provides information to, the purchaser with respect to making this investment. That could include a representative of the issuer or selling security holder, a registrant or a person who is exempt from the registration requirement.]* | *[Instruction: The salesperson is the person who meets with, or provides information to, the purchaser with respect to making this investment. That could include a representative of the issuer or selling security holder, a registrant or a person who is exempt from the registration requirement.]* |
| First and last name of salesperson (please print): | First and last name of salesperson (please print): |
| Telephone: | Email: |
| Name of firm (if registered): | Name of firm (if registered): |

---

-B-9-

---

| |
|:---|
| &nbsp;&nbsp;**SECTION 6 TO BE COMPLETED BY THE ISSUER OR SELLING SECURITY HOLDER** |
| &nbsp;&nbsp;**6. For more information about this investment** |
| &nbsp;&nbsp; Damon Inc.<br> 4601 Canada Way, Suite #402<br> Burnaby, British Columbia, Canada, V5G 4X7<br>Attention: Bal Bhullar, Chief Financial Officer<br> Email: bal@damon.com<br> ****<br> **For more information about prospectus exemptions, contact your local securities regulator. You can find contact information at <u>www.securities-administrators.ca</u>.** |

---

**Form instructions:**

1. This form does not mandate the use of a specific font size or style but the font must be legible.

2. The information in sections 1, 5 and 6 must be completed before the purchaser completes and signs the
form.

3. The purchaser must sign this form. Each of the purchaser and the issuer or selling security holder must
receive a copy of this form signed by the purchaser. The issuer or selling security holder is required to keep a copy of this form for
8 years after the distribution.

__________

-B-10-

**<u>ANNEX C</u>**

**<u>INTERNATIONAL INVESTOR CERTIFICATE</u>**

**(FOR SUBSCRIBERS RESIDENT OUTSIDE OF CANADA AND THE UNITED STATES)**

TO: Damon Inc. (the "**Company**")

The undersigned (the "**Subscriber**") represents covenants and certifies to the Company that:

1. the Subscriber (and if the Subscriber is acting as agent for a disclosed principal, such disclosed principal)
is not resident in Canada or the United States or subject to applicable securities laws of Canada or the United States;

2. the issuance of the Common Shares in the capital of the Company under the accompanying Subscription Agreement
by the Company to the Subscriber (or its disclosed principal, if any) may be effected by the Company without the necessity of the filing
of any document with or obtaining any approval from or effecting any registration with any governmental entity or similar regulatory authority
having jurisdiction over the Subscriber (or its disclosed principal, if any);

3. the Subscriber is knowledgeable of, or has been independently advised as to, the applicable securities
laws of the jurisdiction which would apply to this subscription, if there are any;

4. the issuance of the Common Shares to the Subscriber (and if the Subscriber is acting as agent for a disclosed
principal, such disclosed principal) complies with the requirements of all applicable laws in the jurisdiction of the Subscriber's
residence;

5. the applicable securities laws do not require the Company to register the Common Shares, file a prospectus
or similar document, or make any filings or disclosures or seek any approvals of any kind whatsoever from any regulatory authority of
any kind whatsoever in the international jurisdiction;

6. the purchase of the Common Shares by the Subscriber, and (if applicable) each disclosed beneficial subscriber,
does not require the Company to translate any documents by the Company (including, without limitation, the Offering Circular or the accompanying
Subscription Agreement);

7. the Subscriber will not sell, transfer or dispose of the Common Shares except in accordance with all applicable
laws, including applicable securities laws of Canada and the United States, and the Subscriber acknowledges that the Company shall have
no obligation to register any such purported sale, transfer or disposition which violates applicable Canadian or United States securities
laws; and

8. the Subscriber will provide such evidence of compliance with all such matters as the Company or its counsel
may request.

-C-1-

Upon execution of this Certificate by the Subscriber, this Certificate shall be incorporated into and form a part of the Subscription Agreement to which this Certificate is attached, and the Subscriber acknowledges that the Company is relying on this Certificate to determine the Subscriber's suitability as a purchaser of the Securities.

All capitalized terms used in this Certificate without definition shall have the respective meanings ascribed to them in the Subscription Agreement.

The Subscriber agrees that the representations, covenants and certifications contained to this Certificate shall survive any issuance of Securities to the Subscriber.

The statements made in this Certificate are true and accurate as of the date hereof.

DATED: ________________________, 202__.

---

| |
|:---|
| **SUBSCRIBER:** |
| (Print Full Name of Entity or Individual) |

---

---

| | |
|:---|:---|
| By: |  |
|  | (Signature) |
| Name: |  |
|  | (If signing on behalf of entity) |
| Title: |  |
|  | (If signing on behalf of entity) |

---

__________

-C-2-

## Ex1A-6

**Exhibit 8.1**

![](ex6-33_001.jpg)

**Order Form**

**Damon Inc. Reg A+ Agreement with DealMaker**

---

| | |
|:---|:---|
| ***Prepared for:*** Damon Inc. | ***Quote Date:*** Jun 25, 2025 |
| ***Contact:*** Bal Bhullar | ***Valid Until:*** Jul 20, 2025 |
| ***Email:*** bal@damon.com | ***Proposed By:*** Eugene Cofie |

---

**Billing Information**

---

| | |
|:---|:---|
| ***Effective Date:*** | Jun 27, 2025 4:30:26 PM UTC-0700 |
| ***Commencement Date*** *(for Monthly Tech Fees)**:*** | Aug 7, 2025 |
| ***Commencement Date*** *(for Monthly Reach Fees)**:*** | Aug 7, 2025 |
| ***Payment Terms:*** | 100% Due on Signing |
| ***Billing Contact:*** | Bal Bhullar |
| ***Billing Phone:*** | 7789983255 |
| ***Billing Email:*** | bal@damon.com |
| ***Billing Address:*** | 4601 Canada Way, Suite 402, Burnaby BC Canada V5G4X7 |

---

**Set Up Fees**

---

| | |
|:---|:---|
| **Set Up Fees** | **Net Price** |
| DealMaker Reach - Full Package Setup | $30000 |
| DealMaker Securities – Reg A Onboarding Setup | $27500 |
| DealMaker.tech Plus Setup | $10000 |
| &nbsp;&nbsp;&nbsp;**Total Net Setup** | $**67500** |

---

**Monthly Fees**

---

| | |
|:---|:---|
| **Monthly Fees** | **Net Price** |
| DealMaker Reach - Marketing Advisory Monthly Fee | $11000 |
| DealMaker Reach - Marketing Consulting Monthly Fee | $2000 |
| DealMaker.tech - Plus Platform Monthly Fee | $2000 |
| &nbsp;&nbsp;&nbsp;**Total Net Monthly** | $**15000** |

---

Note: The Commencement Date above is the date at which monthly fees begin being invoiced. We agree to reasonable adjustment and revising of the Commencement Date of the agreement to accommodate the timing of Damon Inc's reverse stock split.

The Effective Date is the date at which the agreement is signed.

This Order Form sets forth the terms of service by which a number of separate DealMaker affiliates are engaged to provide services to Customer (collectively, the "**Services**"). By its signature below in each applicable section, Customer hereby agrees to the terms of service of each company referenced in such section. Unless otherwise specified above, the Services shall commence on the date hereof.

By proceeding with its order, Customer agrees to be bound contractually with each respective company. The Applicable Terms of Service include and contain, among other things, warranty disclaimers, liability limitations and use limitations.

In particular, Customer understands and agrees that it is carrying out a self-hosted capital raise and bears primary responsibility for the success of its own raise. No DealMaker entity is ever responsible for the success of Customer's campaign and no guarantees or representations are ever in place with respect to (i) capital raised (ii) investor solicitation or (iii) completion of investor transactions with Customers. Customer agrees and acknowledges that online capital formation is uncertain, and that nothing in this agreement prevents Customer from pursuing concurrent or sequential alternative forms of capital formation. Customer should use its discretion in choosing to engage the vendors described in this Agreement and agrees that such entities bear no responsibility to Customer with respect to raising capital.

There shall be no force or effect to any different terms other than as described or referenced herein (including all terms included or incorporated by reference) except as entered into by one of the companies referenced herein and Customer in writing.

A summary of Services purchased is described in the Schedule "Summary of Compensation" attached. The applicable Terms of Service are described on the Schedules thereafter, and are incorporated herein.

Services NEVER include providing any investment advice nor any investment recommendations to any investor.

Damon Inc.

---

| | |
|:---|:---|
| Name | Bal Bhullar |
| Title | CFO |
| Signature | /s/ Bal Bhullar |
| Date | 2025-07-21 |

---

**Schedule "Summary of Compensation"**

**A. Regulation A Offering**

● **$67,500 Advances** (an advance against accountable expenses anticipated to be incurred, and refunded to extent not actually incurred)

*This advance includes:*

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. $27,500
 prepaid to DealMaker Securities LLC for Pre-Offering Analysis

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. $10,000
 prepaid to Novation Solutions Inc. O/A DealMaker for infrastructure for self-directed electronic
 roadshow

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. $30,000
 prepaid to DealMaker Reach LLC for consulting and developing materials for self-directed
 electronic roadshow

● **$13,000 monthly account management compensation.** 

○ Monthly account management and software access fees commence in the month of the Commencement date.

○ To the extent services are commenced in advance of a FINRA no objection letter being received, such amounts shall be considered accountable expenses anticipated to be incurred, and fully refunded to extent not actually incurred). A maximum of $39,000 or three months of account management fees are payable prior to a no objection letter being received.

○ After the offering commences, Monthly compensation includes:

● $2,000 account maintenance fees payable to DealMaker (up to a maximum of $18,000 during the Offering)

● $11,000 marketing advisory fees payable to Reach (up to a maximum of $99,000 during the Offering)

● **4.5% Cash Compensation From All Proceeds:** 

○ Cash compensation does not include processing investor refunds for Customers, which are chargeable at $50.00 per refund.

○ Customer shall be responsible for third-party fees with respect to payment processing.\*

○ Customer may elect to offset all or a portion of these fees by levying an administrative fee to investors.

● **Supplementary Marketing Services to be determined on a case-by-case basis, as may be authorized by the Customer, up to a maximum of an additional $250,000 of compensation during the Offering.** 

● **$5,090 in Corporate Filing Fees, which may fluctuate during the life of the offering based on the total maximum value taking into account investor fees, bonus shares, and gross proceeds. This is collected by DealMaker Securities, but submitted to FINRA.** 

**\*** **Fees are estimated to be approximately 2% of offering proceeds.**

**Fair Compensation**

To ensure adherence to fair compensation guidelines, DealMaker Securities will ensure that, in any scenario, the aggregate fees payable to DealMaker Securities and its affiliates in respect of Services related to the Offering shall never exceed maximum compensation. If the Offering is fully subscribed, the maximum amount of underwriting compensation will be $1,850,500.

*\** *In the event that the Financial Industry Regulatory Authority ("FINRA") Department of Corporate Finance does not issue a no objection letter for the Offering, all DMS Fees are fully refundable other than services actually rendered.*

 

**B. Non-Regulation A Offering Fees**

● **$2,000 monthly consulting fees to DealMaker Reach LLC for branding and marketing services unrelated to the Offering.** 

**Schedule "Marketing Scope of Services (DealMaker Reach LLC)"**

Full Marketing Compensation Includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Website
 Design and Development:

● Copywriting and design of the website with up to 3 rounds of revisions at the copywriting stage and design stage each.

● Development of the website using Webflow.

● Integration of tracking, analytics, and pixels.

● Ongoing maintenance and management of website content.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Audience-Building
 Infrastructure:

● Audience building through email capture on landing pages.

● Creation of the following email series:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Investor
 educational email series (4 to 6 emails)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Post
 investment series (1-2 emails)

● Ongoing email list nurturing with updates from the Customer's campaign announcements, relevant news, and webinars.

● Design and implementation of email capture in Klaviyo.

● Integration of DealMaker webhooks to build and track the investor funnel and status.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Video
 Production:

● Creation of a campaign video to highlight the investment opportunity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. 90-120
 Seconds

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Basic
 Motion Graphics (includes lower-thirds, basic text animations, etc.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Access
 to Stock Footage

● Creation of video script with up to 2 rounds of revisions on the script.

● One full day of video shooting (up to 10 hours).

● Creation of final video with up to three revisions of edits

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Conversion
 Rate Optimization (CRO):

● Continuous testing of website content to improve conversion rates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Email
 Marketing:

<sub> </sub>

● Ongoing nurturing of the email list with updates repurposed from the Customer's campaign announcements, relevant news, and webinars.

<sub>6.</sub> Ad Creative

<sub> </sub>

● 4-6 image assets resized for all channels

● 2-3 video assets resized for all channels

● 3-4 copy variations applicable to respective channels

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Paid
 Media

● Management of Google ADs including Search, Display, Google Discovery, and YouTube ads.

● Management of Meta Ads (Facebook & Instagram) as well as Twitter/X ads upon request.

● Ongoing testing of ad copy and creative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Partnerships:

● Sourcing and negotiating private ad placements with relevant publishers and email newsletters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Reporting:

<sub> </sub>

● Regular calls: bi-weekly

● Strategic planning, implementation, and execution of the marketing budget.

● Coordination with third-party agents in connection with the performance of services.

● Monthly forecasting.

● Monthly and bimonthly report generation.

Customer is responsible for reviewing items 1 through 9 with Customer's professional advisors, as required Marketing Services monthly fee will commence on the **Commencement Date**.

COMPENSATION NOT INCLUDED

● Expenses

**Marketing Services are provided by DealMaker Reach LLC. Customer hereby agrees to the terms set forth in the DealMaker Reach Terms of Service, with compensation described on Schedules "Summary of Compensation" and "Marketing Score of Services (DealMaker Reach LLC)" hereto.**

**Customer<br> Signature** 

**Schedule "Broker Dealer Services" (DealMaker Securities LLC)**

**Pre-Offering Analysis**

● Reviewing Customer, its affiliates, executives and other parties as described in Rule 262 of Regulation A, and consulting with Customer regarding the same.

**Pre-Offering Consulting for Self-Directed Electronic Roadshow**

● Reviewing with Customer on best business practices regarding raise in light of current market conditions and prior self-directed capital raises

● Reviewing with Customer on question customization for investor questionnaire, selection of webhosting services, and template for campaign page

● Advising Customer on compliance of marketing material and other communications with the public with applicable legal standards and requirements

● Providing advice to Customer on content of Form 1A and Revisions

● Assisting in the preparation of SEC and FINRA filings

● Working with the Client's SEC counsel in providing information to the extent necessary

**Advisory, Compliance and Consulting Services During the Offering**

● Reviewing investor information, including identity verification, performing AML (Anti-Money Laundering) and other compliance background checks, and providing Customer with information on an investor in order for Customer to determine whether to accept such investor into the Offering;

● If necessary, discussions with the Customer regarding additional information or clarification on an Customer-invited investor;

● Coordinating with third party agents and vendors in connection with performance of services;

● Reviewing each investor's subscription agreement to confirm such investor's participation in the offering and provide a recommendation to the company whether or not to accept the subscription agreement for the investor's participation;

● Contracting and/or notifying the company, if needed, to gather additional information or clarification on an investor;

● Providing ongoing advice to Customer on compliance of marketing material and other communications with the public, including with respect to applicable legal standards and requirements;

● Reviewing with Customer regarding any material changes to the Form 1A which may require an amended filing; and

● Reviewing third party provider work-product with respect to compliance with applicable rules and regulations.

**Customer hereby engages and retains DealMaker Securities LLC, a registered Broker-Dealer, to provide the applicable services described above. Customer hereby agrees to the terms set forth in the DealMaker Securities Terms, with compensation described on Schedule "Summary of Compensation" hereto.**

**Customer<br> Signature** 

**Schedule**

**"DealMaker.tech Subscription Platform and Shareholder Services Online Portal"**

**During the Offering, Subscription Processing and Payments Functionality**

● Full analytics suite to track all aspects of the offering and manage the conversion of prospective investors into actual investors.

**Apart from the Offering, Shareholder Management via DealMaker Shareholder Services**

● Access to DM Shareholder Management Technology to provide corporate updates, announce additional financings, and track engagement

● Document-sharing functionality to disseminate share certificates, tax documentation, and other files to investors

● Monthly compensation is payable to DealMaker.tech while the client has engaged DealMaker Shareholder Services

**Subscription Management and DM Shareholder Management Technology is provided by Novation Solutions Inc. O/A DealMaker. Customer hereby agrees to the terms set forth in the DealMaker Terms of Service with compensation described on Schedule "Summary of Compensation" hereto.**

**Customer<br> Signature** 

![](ex6-33_002.jpg)

**DEALMAKER TERMS OF SERVICE**

These Terms of Services **("Terms")** govern access to the software and services provided by any of the DealMaker entities such as Novation Solutions Inc., O/A DealMaker (**"DealMaker.tech"**), DealMaker Reach, LLC (**"DM Reach"**), DealMaker Securities LLC (**"DMS"**) and DealMaker Transfer Agent LLC, O/A DealMaker Shareholder Services (**"DMTA"**) (individually, each a **"DealMaker Entity"** and collectively, the **"DealMaker Entities"**). Each of the entities may be referred to as **"DealMaker"** or the **"Company"** in these Terms.

These Terms have legal implications. It is important that you read these terms carefully, and consult legal counsel if you determine that is appropriate, in order to understand these Terms.

The Terms, together with the DealMaker order form from which this page was linked (**"Order Form"**), form an agreement between the Customer (as defined in the order form) and the applicable DealMaker entit(ies) being engaged for technology or services (each an **"Agreement"**). Each of these Agreements may be referred to as "an Agreement" or "the Agreement" in these Terms.

Each Agreement contains, among other things, warranty disclaimers, liability limitations and use limitations. Each Agreement also contains an arbitration provision which is enforceable against the parties and may impact your rights and obligations. By signing the Order Form and using the DealMaker Entity services described in such Order Form, Customer accepts and agrees to be bound by these Terms.

These Terms apply to all DealMaker Entities unless a DealMaker Entity is explicitly excluded or alternative terms are supplemented, as indicated below.

**<u>1. Definitions</u>**

**"Account"** means Investment funds deposited in Customer's account with a financial institution by (i) Customer's investors directly, funded via wire or check or (ii) a third party payment processor, prior to the Closing of any transaction involving such investments.

**"Closing"** means the resolution of all applicable AML-related exceptions or discrepancies identified through any searches provided by third parties through Company or otherwise identified by or to Company for all transactions associated with an investment and the acceptance by the Customer of the investment associated with such transactions.

**"Closing Date"** means the date of each Closing.

**"Commencement Date"** occurs in the month the Customer begins paying monthly subscription fees. If no Commencement Date is stated on the Order Form, monthly subscription fees are payable in the month following the Effective Date.

**"Customer Payment Processing Account"** means a Customer's account with a third party payment processor into which Customer deposits investment funds.

**"DM Shareholder Management Technology"** means DealMaker's investor communication functionality technology and/or services provided by DealMaker.tech.

**"Effective Date"** is the date the Agreement is signed.

**"Escrow Account"** means Customer's third party escrow account into which Customer directs investment funds from Investors.

**"Improvements"** means any improvements, updates, variations, modifications, alterations, additions, error corrections, enhancements, functional changes or other changes to the Software, including, without limitation: (i) improvements or upgrades to improve software efficiency and maintainability; (ii) improvements or upgrades to improve operational integrity and efficiency; (iii) changes or modifications to correct errors; and (iv) additional licensed computer programs to otherwise update the Software.

**"Intended Purpose"** means Customer's use of the Software to raise capital online via technology or services provided by DealMaker.tech.

**"Offerings"** refers to online capital formation transactions completed by Company's Customers or Customer's clients, using the Software.

**"Software"** means the DealMaker™ cloud-based software program developed by Company, including its features, functionality, performance, application and use, any related printed, electronic and online documentation, manuals, training aids, user guides, system administration documentation and any other files that may accompany the Software used by the Customer.

**"TOS"** means the DealMaker.tech website terms of service located at https://www.dealmaker.tech/terms.

**<u>2. Term and Termination</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1. Term**

**Unless otherwise stated in the Order Form, the Agreement will remain in effect from the Effective Date until the first day of the month following the completion of an Offering ("Term"). The Term for DMTA is set forth in the DMTA terms.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>2.2. Renewal</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.1. <u>Activation Fees</u>: Unless otherwise specified in the Order Form, activation fees do not renew. Activation fees are one-time fees. These may also be referred to as "Advances", "Launch Expenses", or "Setup," if they precede the Offering launch or commencement of Services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.2. <u>Monthly Subscription Fees</u>: Unless otherwise specified in the Order Form, Monthly Subscription Fees ("Subscription Fee") automatically renew each month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.3. <u>DM Shareholder Management Technology Fees</u> : DM Shareholder Management Technology is a service offered by DealMaker.tech. Unless otherwise specified in the DealMaker.tech or DMTA fee schedules to your Order Form, fees for use of the DM Shareholder Management Technology, when applicable, will automatically renew each month and the services can be canceled within any month upon written notice, effective the month following cancellation of DealMaker.tech services, except for DMTA Customers. Cancellation of fees for use of DM Shareholder Management Technology for DMTA customers is governed by the DMTA terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.4. <u>DealMaker Transactional Fees</u> are incurred at the time of each transaction and charged on a per use basis, as specified in the Order Form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>2.3. Termination</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.1. <u>Termination for Cause</u>. Customer or any DealMaker Entity may terminate this Agreement immediately for Cause, as to any or all Subscription services. "Cause" includes a determination that a party is acting, or have acted, in a way that has negatively reflected on or impacted, or may negatively reflect on or impact the other party, its prospects, or its customers, including without limitation in a way that violates or causes a violation of applicable law or regulation. Upon termination for cause, there are no additional fees incurred. All prepaid unused fees would be returned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.2. Otherwise, an Agreement may only be terminated as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Material Breach</u>: A party may terminate this Agreement upon sixty (60) days written notice if the breaching party fails to perform or observe any material term, covenant, or condition to be performed or observed by it under this Agreement and such failure continues to be unremedied after sixty (60) days' written notice of such failure from Company to Customer.

If the breach has not been cured within the sixty day period, the non-breaching party may terminate this Agreement forthwith and may immediately exercise any one or more of the remedies available to it under the Terms of this Agreement, in addition to any remedy available at law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Customer Default</u>. If Customer defaults in performing its obligations under an Agreement, Company may terminate this Agreement (i) upon written notice if any material representation or warranty made by Customer proves to be incorrect at any time in any material respect or (ii) upon written notice, in order to comply with a legal requirement, if such compliance cannot be timely achieved using commercially reasonable efforts, after Company has provided Customer with as much notice as practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Right of Termination – Insolvency/Bankruptcy</u>: A party may terminate an Agreement immediately, if the other party becomes the subject of a petition in bankruptcy or any other proceeding relating to insolvency, cessation of business, liquidation or assignment for the benefit of creditors, reorganization or other relief, or is adjudged bankrupt or insolvent or has entered against it a final and unappealable order for relief, under any bankruptcy, insolvency, or other similar law. In the event of Company insolvency, all of the Customer's assets are immediately released.

(collectively, **"Termination Reasons"**)

Other than the Termination Reasons, unless explicitly stated otherwise, an Agreement may not otherwise be terminated prior to the end of the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.3. The termination of an Agreement as described herein shall not exclude the availability of any other remedies. Any delay or failure by either party to exercise, in whole or in part, any right, power, remedy or privilege shall not be construed as a waiver or limitation to exercise, in whole or in part, such right, power, remedy or privilege.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.4. All terms of an Agreement, which should reasonably survive termination, shall survive, including, without limitation, confidentiality, limitations of liability and indemnities, arbitration and the obligation to pay fees relating to services provided by the DealMaker Entity prior to termination.

**<u>3. Payment & Billing</u>**

DealMaker shall be compensated as set out in the Order Form. Unless otherwise specified in the schedules to the Order Form, Customer will be invoiced on a monthly basis. Payment will be automatically debited from the Customer's bank account or credit card on file, with a receipt to be automatically delivered. Invoices will be available for the Customer to review upon request. In the event that any Customer payment fails, in respect of any invoice due and payable to a DealMaker Entity (**"Arrears"**), Customer must re–connect its bank account or update credit card within fourteen (14) days and submit payment for any Arrears. Unless Arrears are cleared and accounts are brought back into good standing within 14 days, automated payouts and reconciliation reporting will be disabled. In the event the Arrears are not cleared or accounts are not brought back into good standing within 30 days, all services will be paused until payment is received and the Customer's bank account or credit card authorization is restored. DealMaker reserves the right to debit from Customer's payment account in respect of any Arrears aged beyond thirty days unless the Customer disputes the charges in writing.

**<u>4. Intellectual Property</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. <u>Title</u>. Company retains title to and sole ownership of the Software and all Improvements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. <u>Cloud-Based Software</u>. The Software is cloud based. As such, the source and object code are located on servers outside of the Customer's premises. Customer shall have no access to the facilities at which the Software is hosted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. <u>Intellectual Property</u>. All Intellectual Property, Intellectual Property Rights and distribution rights associated with or arising from Company's Confidential Information including but not limited to the Software, remain exclusively with Company. **"Intellectual Property"** includes, without limitation, with respect to all DealMaker Products: all technical data, designs, specifications, software, data, drawings, plans, reports, patterns, models, prototypes, demonstration units, practices, inventions, methods and related technology, processes or other information, and all rights therein, including, without limitation, patents, copyrights, industrial designs, trade-marks and any registrations or applications for the same and all other rights of intellectual property therein, including any rights that arise from the above items being treated by the parties as trade secrets (the rights being **"Intellectual Property Rights."**)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4. <u>Restrictions.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.1. Customer may not: (i) modify, enhance, reverse-engineer, decompile, disassemble or create derivative forms of the Software; (ii) copy the Software; (iii) sell, sub-license, lease, transmit, distribute or otherwise transfer rights in/to the Software; (iv) allow third-party use of the Software installed at the Site; or (v) pledge, hypothecate, alienate or otherwise encumber the Software to any third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.2. Use of the Software is restricted to the Intended Purpose only. Customer agrees not to engage in any activity restricted by the TOS or transfer any information restricted by the TOS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.3. Customer acknowledges that unauthorized reproduction or distribution of the Software is expressly prohibited by law, and may result in civil and criminal penalties. Violators may be prosecuted. Customer may not reverse engineer, decompile, disassemble or otherwise attempt to discover the source code of the Software, DealMaker website or any part thereof, except and only to the extent that such activity is expressly permitted by applicable law notwithstanding this limitation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5. Customer represents and warrants that any Customer assets or materials provided and the intended use thereof in accordance with the terms of each Agreement, will not infringe, violate, or misappropriate any third party rights, including without limitation, any copyrights, trademarks, trade secrets, privacy, publicity, or other proprietary or intellectual property rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6. Customer represents and warrants that Customer will not to bid on or use any DealMaker Entity trademarks, brand names, or any variations thereof in Customer's paid search advertising campaigns. This includes, but is not limited to, Google AdWords, Bing Ads, and other search engine marketing platforms. Unless otherwise provided for in the Agreement, Customer shall not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.1. bid on or use our trademarks as keywords in Customer's paid search campaigns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.2. include DealMaker Entity trademarks in Customer's ad copy, display URL, or landing page URL; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.3. use any misspellings, variations, or confusingly similar terms to DealMaker Entity trademarks in Customer's paid search activities;

DealMaker reserves the right to monitor and enforce compliance with these trademark bidding restrictions.

**<u>5. Confidential Information</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. **"Confidential Information"** means any and all confidential or proprietary information of DealMaker or Customer, including affiliates thereof, which has been or may be disclosed by one party to this Agreement ("Disclosing Party") to the other party ("Receiving Party"), at any time prior to and during the Agreement Term, including, without limitation, the names of employees and owners, the names or other personally identifiable information of customers, business and marketing information, technology, know-how, ideas, reports, techniques, methods, processes, uses, composites, skills, and configurations, intellectual property of any kind and all documentation provided by investors in the Offering. Without limiting the generality of the foregoing, DealMaker's Confidential Information includes: (i) the Software; (ii) the computer code underlying the Software, including source and compiled code and all associated documentation and files; (iii) information relating to the performance or quality of the Software and services provided by the DealMaker Entity; (iv) the details of any technical assistance provided to Customer during the Term; (v) any other products or service made available to Customer by DealMaker during the Agreement Term; and (vi) information regarding DealMaker's business operations including its research and development activities. All work product, pricing, Agreement terms and process information of either party exchanged with the other party to perform the terms of the Agreement is agreed to be Confidential Information, except that any logos or marketing references are not Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. **"Confidential Information"** does not include information that: (i) is or has become generally known to the public without any action by the non-disclosing party; (ii) was known by either party prior to entering into the Agreement; (iii) was independently determined by either party; or (iv) was disclosed to the relevant party without restriction by a third party who, to the best of such party's knowledge and belief, had no obligation not to disclose such information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. Neither party may disclose Confidential Information without the express written consent of the other party, except as specifically contemplated in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4. <u>Trade Secrets.</u> Notwithstanding anything to the contrary herein, with respect to Confidential Information that constitutes a trade secret under the laws of any jurisdiction, such rights and obligations shall survive such expiration or termination until, if ever, such Confidential Information loses its trade secret protection other than due to an act or omission of the receiving Party or its Representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5. By executing this Agreement, the Customer is providing written consent for DealMaker to disclose Confidential Information but only to the extent required to carry out the terms of this Agreement. Customer's investors will be required to sign-in to the DealMaker.tech portal and agree to the DealMaker.tech TOS. The parties agree that this process shall not constitute a disclosure of "Confidential Information" as described in this section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6. Notwithstanding anything in this section, Customer and DealMaker hereby agree that each party may use the other party's logo for promotional purposes (**"Logo Use"**). The parties acknowledge that Logo Use does not include the use of any descriptive copy, all of which must be approved by Customer and DealMaker in writing. Except as provided for in this paragraph, nothing contained in this Agreement will be construed as granting Customer or DealMaker any right, title or interest in or to any or to use any of the other party's Confidential Information. Customer or DealMaker may terminate Logo Use at any time, with or without cause, upon written notice to the other party. For any Customer conducting a public offering on the DealMaker platform (i.e. Regulation A or Regulation CF offerings), in which the offering is already in the public domain, Customer agrees that DealMaker may disclose Customer name and offering proceeds to third party data aggregators for the purpose of generating industry reports. Industry reports shall not include publication of Customer name or the amount raised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7. <u>Authorized Disclosure</u>. Each party may, without the consent of the other party, disclose Confidential Information to the extent reasonably necessary to comply with applicable regulatory demands or orders in connection with the purpose for which the Customer enters into this Agreement. Each party may disclose the existence of this Agreement and any relationship between the parties.

**<u>6. Exclusion of Warranties</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. Except as expressly stated in this Agreement, DealMaker makes no representations or warranties or covenants to Customer, either express or implied, with respect to the Software, services provided by the DealMaker Entity or with respect to any Confidential Information disclosed to Customer. DealMaker specifically disclaims any implied warranty or condition of non-infringement, merchantable quality or fitness for a particular purpose. Customer acknowledges that the Software is in continuous development and that it has been advised by DealMaker to undertake its own due diligence with respect to all matters arising from this Agreement. All services are provided on an "as is" and "as available" basis without any warranties, express or implied, including, without limitation, implied warranties of merchantability or fitness for a particular purpose, and DealMaker expressly disclaims all warranties. Customer agrees and understands that no DealMaker entity has any fiduciary duty to Customer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. <u>No Improvements</u>. Company is under no obligation to provide Improvements to the Software during the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. <u>Any Improvements Gratuitous</u>. Any Improvements provided by DealMaker to Customer from time to time during the Term shall be, unless otherwise stated, construed as being provided on a purely gratuitous basis and shall not give rise to any right or entitlement on the part of Customer, except as otherwise specifically provided in this Agreement. Any Improvements so provided shall be governed by the same terms and conditions applicable to the Software, as described herein, unless otherwise outlined in a fee schedule or addendum to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4. <u>No Future Entitlement.</u> Nothing in this Agreement shall be construed as creating any obligation on DealMaker to continue to develop, commercialize, offer, make available or support (i) the Software; or (ii) any feature, functionality or Improvement as may be encompassed in the Software from time to time during the Term, beyond the duration of the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5. <u>Company Templates and Samples are Provided with No Warranties</u>. Customer may request access to DealMaker's templates and resources to help organize and set up an offering or any communications related thereto. These resources may include template communications, educational packages, resources for the management of administrative and collaborative tasks, and best practices observed from other offerings and industries. Customer acknowledges and agrees that, by providing access to any documents, training, or resources, DealMaker is not rendering and shall not be deemed to have rendered any legal, tax, investment, or financial planning advice. Customer shall, as it deems necessary or advisable, consult its own legal, tax, investment, or financial planning advisers. All templates and samples are provided with no warranties whatsoever and by making use of such materials, Customer is agreeing to voluntarily assume any liability with respect thereto.

**<u>7. Limitation and Exclusion of Liability</u>**

Unless otherwise specified herein, in no event is DealMaker's liability for any damages on any basis, in contract, tort or otherwise, of any kind and nature whatsoever, arising in respect of this Agreement, howsoever caused, including damages of any kind and nature caused by DealMaker's negligence or by a breach of contract or any other breach of duty whatsoever, to exceed the fees actually paid to DealMaker by Customer during the Term. Customer acknowledges that DealMaker has set its fees under this Agreement in reliance on the limitations and exclusions of liability set forth in this Agreement and such reliance forms an essential basis of this Agreement.

**<u>8. Indemnification</u>**

<u>Applicability of Indemnification Clause:</u> Customers of DMTA are bound by the separate indemnification clauses applying only to DMTA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1. **Indemnification by Customer**. Customer shall indemnify and hold each DealMaker Entity, its affiliates and their respective members, officers, directors and agents (**"Indemnified Parties"**) harmless from any and all actual or direct losses, liabilities, claims, demands, judgements, arbitrations awards, settlements, damages, direct fees, costs and expenses (including attorney fees and costs) (collectively **"Losses"**), resulting from or arising out of any third party suits, actions, claims, demands, investigations or similar proceedings (collectively **"Claim"**) to the extent they are based upon (i) a breach of this Agreement by Customer, (ii) the wrongful acts or omissions of Customer, (iii) Customer, or Customer's clients' engagement with DealMaker and any actions taken in conjunction therewith, including but no limited to usage of the Software, whether or not such activities are in accordance with Intended Usage or (iv) the Offering. **"Losses"** includes, losses arising from payment processing which are losses arising from chargebacks, clawbacks, payment reversals, fraudulent charges, insufficient credit, unauthorized charges, claims of Customer or third parties regarding payment disputes, and any other problems relating to card or ACH payments made for the benefit of Customer (**"Payment Processing Losses"**).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2. **Indemnification by Company.** The applicable DealMaker Entity shall indemnify and hold Customer, Customer's affiliates and Customer's representatives and agents harmless from any Losses resulting from or arising out of Claims to the extent they are based upon (i) such DealMaker Entity's breach of this Agreement (ii) the negligence, fraud, bad faith or willful misconduct of the DealMaker Entity or (iii) DealMaker Entity's failure to comply with any applicable laws in the performance of its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3. **Indemnification Procedure**. If any proceeding is commenced against a party entitled to indemnification under this section, prompt notice of the proceeding shall be given to the party obligated to provide such indemnification. The indemnifying party shall be entitled to take control of the defense, investigation or settlement of the Proceedings and the indemnified party agrees to reasonably cooperate, at the indemnifying party's cost in ensuing investigations, defense or settlement. The indemnifying party shall reimburse the indemnified party for all expenses (including reasonable fees, disbursements and other charges of counsel) as they are incurred in connection with investigating, preparing, pursuing, defending, or settling a Claim (including without limitation any shareholder or derivative action); provided, however, that indemnifying party will not be liable to indemnify and hold harmless or reimburse an indemnified party pursuant to this paragraph to the extent that an arbitrator (or panel of arbitrators) or court of competent jurisdiction will have determined by a final non-appealable judgment that such Claim resulted from the gross negligence or willful misconduct of such indemnified party. The Indemnifying Party will not settle, compromise or consent to the entry of a judgment in any pending or threatened Claim unless such settlement, compromise or consent includes a release of the indemnified parties satisfactory to the indemnified parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4. **Indemnified Party Limitation Of Liability**. In no event shall the Indemnified Parties be liable or obligated in any manner for any consequential, exemplary or punitive damages or lost profits incurred by Customer arising from or relating to the Agreement, an Offering, or any actions or inactions taken by an Indemnified Parties in connection with the Agreement, and the Customer agrees not to seek or claim any such damages under any circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5. **Recovery of Payment Processing Losses.** Notwithstanding anything to the contrary in this Agreement, upon Company giving Customer prior written notice of no less than five business days, DealMaker.tech shall have the right, in its sole discretion, to request Customer reimburse Company for Payment Processing Losses from Customer Account or from Customer's Payment Processing Account, unless prohibited by law. Customer acknowledges and agrees that recovery of Losses from Customer's Payment Processing Account will not serve as any limitation on the indemnification obligations of Customer under this Agreement or any remedy or claim that Company may be entitled to pursue against Customer in respect of such Losses.

**<u>9. Third Party Services</u>**

Customer may request introductions to DealMaker's network of partners and vendors for the purpose of sourcing additional services (including but not limited to, a call center, marketing support, investment relations). Unless otherwise specified in writing, all engagements with third parties in this respect are to be made directly between the Customer and the vendor at the Customer's discretion. Customer acknowledges and agrees that, by making such introductions, DealMaker is not recommending and shall not be deemed to have recommended any partner or vendor's products or services or to have assumed any responsibility for Customer's selection of any partner or vendor or procurement of such products or services.

Without limiting any other protection of DealMaker under this Agreement and notwithstanding anything to the contrary, DealMaker shall bear no responsibility or liability whatsoever in connection with any third party services provided by a vendor engaged by Customer, the decision to engage such vendors rests solely with the management of the Customer on the terms contracted between the Customer and such parties.

**<u>10. Escrow</u>**

Customer acknowledges that if Customer opens a third-party escrow account (either by Customer's choice or as necessary to comply with applicable laws or regulations) in connection with the Company services, Customer will apply for escrow account with a DealMaker-approved escrow provider.

**11.** **<u>Customer Obligations</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.1. General**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.1. Customer shall be responsible for providing Offering terms to its subscribers. Such disclosure shall include, but is not limited to the following material information: a method of Customer valuation, a description of the security available in the Offering, the risks related to the investment, whether there are existing investors and any additional capital expectations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.2. Customer is solely responsible for ensuring that the funds raised in the Offering are used, allocated or invested in accordance with the use of funds described in the Offering disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.3. Customer acknowledges that following the final closing for the Offering, Customer will have sufficient liquidity (from the proceeds raised in the Offering or alternate Customer funds) to sustain Customer operations for that period of time which is clearly identified in the Offering disclosure or alternatively, until the next Customer funding round.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.4. Nothing in this Agreement shall be construed to relieve the managers or officers of Customer from the performance of their respective duties or limit the exercise of their powers in accordance with the Customer's bylaws, operating and constituent documents, written supervisory procedures, applicable law or otherwise. The Customer bears ultimately responsibility for all decisions with regard to any matter upon which Company has rendered its services. The Company shall not, and shall have no authority to control Customer or Customer's day-to-day operations, whether through the performance of the Company's duties hereunder or otherwise. The Customer's directors, managers, officers and employees shall retain all responsibility for Customer, and its operations as and to the extent required by Customer's bylaws, operating and constituent documents, and applicable law. In furtherance and not in limitation of the above, and notwithstanding any other provision of this Agreement or of any other agreement, understanding or document that purports to have any contrary effect or meaning, the DealMaker shall not control, or have the right to control, directly or indirectly, the wages, hours, or terms and conditions of employment of the Customer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.2. Privacy.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.1. Notwithstanding any other provision of this Agreement, Customer shall not take or direct any action that would contravene, or cause the other party to contravene, applicable legislation that addresses the protection of individuals' personal information (collectively, **"Privacy Laws"**). Customer shall, prior to transferring or causing to be transferred personal information to Company, obtain and retain required consents of the relevant individuals to the collection, use and disclosure of their personal information, or shall have determined that such consents either have previously been given upon which the parties can rely or are not required under the Privacy Laws, including any consents required from third parties pursuant to applicable Privacy Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.2. Customer acknowledges that, when used for an Offering, the Customer's personalized Software dashboard (**"Software Dashboard"**) will contain personal identifying information (**"PII"**) of Customer's investors. Customer is solely responsible for ensuring compliance with all applicable Privacy Laws when Customer (a) downloads and stores any PII obtained from the Software Dashboard and (b) provides Customer's representatives with access to the Software Dashboard.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.3. Customer is solely responsible for notifying Company when any Customer representative is no longer working for the Customer and/or authorized to access the Software Dashboard for the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.4 Customer shall cause all third parties with access to PII obtained from the Software Dashboard to execute agreements acknowledging the third parties' obligation to comply with applicable Privacy Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.5. Customer has implemented and continually monitors and enforces an agreement or policy with its Customer representatives, employees and agents that addresses (i) confidentiality and security provisions for all data, including data obtained through the Software Dashboard and (ii) permitted and impermissible use of this data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.3. Bad Actor Checks**

Customer agrees to provide DealMaker Entity with documentation verifying completion of bad actor checks in compliance with all applicable regulations (**"Bad Actor Checks"**). Customer shall provide DealMaker Entity with a copy of Customer's Bad Actor Checks within thirty (30) days of the Effective Date of this Agreement, failing which, DealMaker Entity shall notify Customer in writing that it shall take steps to complete Customer's Bad Actor Checks at Customer's sole expense.

**<u>12. General Terms</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1. <u>Publications.</u> Each party acknowledges that its name, logo(s) and a description of the general nature of this Agreement may be used in any press release, public announcement or public communication during and following the Term. Without limiting the generality of the foregoing, Company may publish such information on its websites and in its promotional materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2. <u>General Cooperation</u>. The parties shall with reasonable diligence do all such things and provide all such reasonable assurances and execute all such documents, agreements and other instruments as may reasonably be necessary for the purpose of carrying out the provisions and intent of any Agreement. The parties further acknowledge that the implementation of each Agreement will require the co-operation and assistance of each of them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3. <u>No Books And Records Obligations</u>. Any and all obligations of Customer related to the storage of books and records remains the sole obligation of Customer. Company expressly disclaims any and all responsibility with respect to any regulatory or industry requirements with respect to the Customer's obligations related to record keeping and maintenance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4. <u>Survival.</u> These terms shall continue in effect until the expiration or termination of the Agreement, whichever is earlier. The provisions of these Terms of Service which should by their nature survive expiration or termination of this Agreement shall so survive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.5. <u>Currency.</u> All currencies referred to herein are in US dollars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.6. <u>Amendment and Waiver</u>. Amendments to any Agreement, including any schedule or attachment hereto, shall be enforceable only if in writing and signed by authorized representatives of each of the applicable parties. A party does not waive any right under this Agreement by failing to insist on compliance with any of the terms of this Agreement or by failing to exercise any right hereunder. No waiver of any breach of any terms or provisions of this Agreement is effective or binding unless made in writing and signed by the authorized representative of each of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.7. <u>Assignment</u>: No party may assign an Agreement or any of its rights or obligations hereunder without the prior written consent of the other party, such consent not to be unreasonably withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.8. <u>Inurement</u>. Each Agreement inures to the benefit of and is binding on each of the parties and their respective successors and permitted assignees, heirs and legal representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.9. <u>Force Majeure</u>. Excluding any obligations of a party to pay monies due hereunder, neither party will be responsible for any delay or failure in its performance or obligations under this Agreement due to causes beyond its reasonable control, including, without limitation, labor disputes, strikes, civil disturbances, government actions, fire, floods, acts of God, war, terrorism, or other similar occurrences (each, a **"Force Majeure Event"**); provided that the party affected by such Force Majeure Event (a) is without fault in causing such delay or failure, (b) notifies the other party of the circumstances causing the Force Majeure Event, and (c) takes commercially reasonable steps to eliminate the delay or failure and resume performance as soon as practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.10. <u>Governing Law.</u> Each Agreement is made in New York governed by and construed in accordance with the laws of the state of New York and the federal laws applicable therein. In connection with each Agreement, the Parties attorn to the jurisdiction of the courts of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.11. <u>Arbitration</u>. Any and all controversies, claims, or disputes arising out of or relating to each Agreement, or the interpretation, performance, or breach thereof, including the scope or applicability of this provision to arbitrate (**"Dispute"**) shall be referred to senior management of the parties for good faith discussion and resolution. In the event the parties cannot resolve any Dispute informally, then such Dispute shall be submitted to confidential, final, and binding arbitration with venue in New York, NY, pursuant to the rules of the American Arbitration Association.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.11.1. <u>Arbitration Procedure</u>. The arbitration shall take place in New York. The arbitration shall be before a single, neutral arbitrator who is a former or retired New York state or federal court judge. The arbitration may be initiated by any party by giving to the other party written notice requesting arbitration, which notice shall also include a statement of the claims asserted and the facts upon which the claims are based. Customer and Company each consent to this method of dispute resolution, as well as jurisdiction, and consent to this being a convenient forum for any such claim or dispute and waive any right it may have to object to either the method or jurisdiction for such claim or dispute. In the event of any dispute among the parties, the prevailing party shall be entitled to recover damages plus reasonable costs and attorney's fees and the decision of the arbitrator shall be final, binding and enforceable in any court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.11.2. <u>Compelling Arbitration</u>. Any party may bring an action in any court of competent jurisdiction to compel arbitration under this Agreement and to enforce an arbitration award. Notwithstanding this arbitration provision, either party shall be entitled to seek injunctive relief (unless otherwise precluded by any other provision of this Agreement) from any court of competent jurisdiction. If for any reason an action proceeds in court rather than in arbitration, it shall be brought exclusively in a state or federal court of competent jurisdiction located in New York and the parties expressly consent to personal jurisdiction and venue therein and expressly waive any right to trial by jury.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.11.3. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY LITIGATION, ACTION, PROCEEDING, CROSS-CLAIM, OR COUNTERCLAIM IN ANY COURT (WHETHER BASED ON CONTRACT, TORT, OR OTHERWISE) ARISING OUT OF, RELATING TO OR IN CONNECTION WITH (I) THIS AGREEMENT OR THE VALIDITY, PERFORMANCE, INTERPRETATION, COLLECTION OR ENFORCEMENT HEREOF OR (II) THE ACTIONS OF THE PARTIES IN THE NEGOTIATION, AUTHORIZATION, EXECUTION, DELIVERY, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT HEREOF.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.12. <u>Entire Agreement</u>: Each Agreement including all schedules thereto, constitutes the entire agreement between the parties concerning the applicable subject matter and supersedes all prior or collateral agreements, communications, presentations, representations, understandings, negotiations and discussions, oral or written.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.13. <u>Headings</u>**:** Headings are inserted for the convenience of the parties only and are not to be considered when interpreting this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.14. <u>Number and Gender.</u> Words importing the singular mean the plural and vice versa. Words in the masculine gender include the feminine gender and vice versa.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.15. <u>Severability.</u> If any term, covenant, condition or provision of an Agreement is held by a court or arbitrator(s) of competent jurisdiction to be invalid, void or unenforceable, it is the parties' intent that such provision be reduced in scope by the court or arbitrator(s) only to the extent deemed necessary by that court or arbitrator(s) to render the provision reasonable and enforceable and the remainder of the provisions of this Agreement will in no way be affected, impaired or invalidated as a result.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.16. <u>Notices.</u> Any notice required to be given pursuant to an Agreement shall be in writing and delivered by electronic mail, addressed to the appropriate party. Any notice given is deemed to have been received on the date on which it was delivered if a business day, or, failing that, on the next business day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.17. **<u>Testimonials.</u>** Customer acknowledges that DealMaker's materials may from time to time include testimonials, real world experiences and insights or opinions about other people's experiences with DealMaker (***"Examples"***) and that this information is for illustration purposes only. Customer further acknowledges that campaigns are affected by a variety of factors including but not limited to time, external global events, varying business plans, different industries, and that these Examples are in no way a representation or guarantee that current or future customers will achieve the same or similar results.

**DealMaker Additional Terms Applicable to Certain DealMaker.tech Services: Third Party Payment Processing, AML/KYC Background Checks, Accreditation Verification and Analytics, Marketing Review Tool.**

**The following sections of the Terms only apply to those DealMaker.tech Customers who purchase the specific services noted.**

**<u>13. Background Checks: AML compliance and "clearing"</u>**

DealMaker's integrated AML searches are tools provided to Customer to assist Customer (or its agents) in complying with applicable obligations related to KYC/AML regulations. Company is not engaged to perform and will not perform, and shall not be deemed responsible for performing, any services related to reviewing or analyzing search results, sources of funds or wealth, or making any determination as to whether Customer has complied with its obligations under applicable anti-money laundering legislation and regulations or as to whether any prospective investor poses any risk of money laundering, terrorist financing, or other criminal or suspicious activity. Customer and/or its agents (including counsel or broker dealer as applicable) shall bear primary responsibility to determine compliance with applicable AML legislation and regulation and shall assist in the clearing of any AML exceptions. Customer's KYC/AML clearing obligations may require Customer to undertake efforts to ensure that individual and corporate investors provide applicable identity verification, explanations of adverse regulatory/disciplinary/bankruptcy history or media reports, confirmation of false positive results, or other documents or information required for AML purposes. DealMaker.tech's AML searches are limited by capabilities and design of products and services of the third parties DealMaker.tech engages to perform such searches, including limitations on the search methodology, matching logic, data sources, and information accuracy.

**<u>14. Regulation D, 506(c) Accredited Investor Verification</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1. Customer may engage either Company or a third party (each a **"Reviewer"**) to assist Customer in complying with applicable obligations related to accredited investor verification pursuant to Rule 506(c) of Regulation D promulgated under the Securities Act (**"Regulation D"**). If Reviewer is Company, Company shall review investor submissions and uploaded documentation on the DealMaker portal and make a determination as to whether Customer has complied with its obligations to verify accredited investors (as defined by Rule 501 of Regulation D promulgated under the Securities Act) (**"DM Verification"**). Customer acknowledges that Company may contact investor for the purpose of accredited investor verification and that Customer has obtained investor's consent to receive communications from Company and/or DealMaker regarding investor's accreditation verification. If Reviewer is a third party, Company will not perform, and shall not be deemed responsible for performing, any services related to reviewing or analyzing search results, sources of funds or wealth, or making any determination as to whether Customer has complied with its obligations to verify accredited investors (as defined by Rule 501 of Regulation D promulgated under the Securities Act).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2. Company does not make and hereby disclaims any warranty, expressed or implied with respect to the information provided through DM Verification. Company does not guarantee or warrant the correctness, merchantability, or fitness for a particular purpose of the information provided through DM Verification. Customer acknowledges that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.1. DM Verification shall not include accreditation verification of non-U.S. investors (**"foreign accredited investors"**) who may be subject to foreign accreditation verification requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.2. DM Verification is conducted using a variety of third party database searches, public record services and user submissions. Company cannot represent or warrant that the data provided will be 100% accurate, complete or up to date. The data is time sensitive and Company provides the information as is. Public records may be incomplete, out of date or have errors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.3. The results of a DM Verification search for any type of personal verification should be interpreted cautiously. Criminal and civil record search results may not provide a complete or accurate representation of a person's criminal background or civil judgment history. Records are available for the majority, but not all, of states and counties. Records can be incomplete, contain inaccuracies or false matches.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.4. Company is not a consumer reporting agency as defined in the Fair Credit Reporting Act (**"FCRA"**), and the information in DealMaker.tech's databases has not been collected in whole or in part for the purpose of furnishing consumer reports, as defined in the FCRA. CUSTOMER SHALL NOT USE DM VERIFICATION SERVICES AS A FACTOR IN (1) ESTABLISHING AN INDIVIDUAL'S ELIGIBILITY FOR PERSONAL CREDIT OR INSURANCE OR ASSESSING RISKS ASSOCIATED WITH EXISTING CONSUMER CREDIT OBLIGATIONS, (2) EVALUATING AN INDIVIDUAL FOR EMPLOYMENT, PROMOTION, REASSIGNMENT OR RETENTION, OR (3) ANY OTHER PERSONAL BUSINESS TRANSACTION WITH ANOTHER INDIVIDUAL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.5. Customer assumes all risks arising from its use or disclosure of DM Verification information Company provides to Customer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.6. DM Verification Services are provided in English only. Customer acknowledges that data provided in any other language will require a certified translation which Customer shall pay for, or alternatively, reject the investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.7. Notwithstanding anything in the DealMaker Terms of Service, Customer agrees that it shall indemnify, defend and hold harmless Company, its officers, directors, employees and agents, and the entities that have contributed information to or provided services for DM Verification against any and all direct or indirect losses, claims, demands, expenses (including attorneys' fees and cost) or liabilities of whatever nature or kind arising out of Customer's use of the information provided by DM Verification and Customer's use or distribution of any information obtained therefrom, except for losses caused exclusively and directly by Company's gross negligence, fraud, bad faith or wilful misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.8. THE DM VERIFICATION SERVICES AND INFORMATION ARE PROVIDED "AS-IS" AND "AS AVAILABLE" AND NEITHER COMPANY NOR ANY OF ITS DATA SUPPLIERS REPRESENTS OR WARRANTS THAT THE INFORMATION IS CURRENT, COMPLETE OR ACCURATE. COMPANY HEREBY DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES REGARDING THE PERFORMANCE OF THE WEBSITE OR OUR SERVICES, AND THE ACCURACY, CURRENCY, OR COMPLETENESS OF THE INFORMATION, INCLUDING (WITHOUT LIMITATION) ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Customer acknowledges that these disclaimers are an integral part of this Agreement, and that Company would not provide DM Verification services if Customer did not agree to these disclaimers.

**<u>15. Third-Party Payment Processing</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.1. For the processing of electronic payments (including bank-to-bank payments, credit card, etc.), the Company may submit material(s) and or application(s) to partner third-party payment processors on behalf of the Customer. Upon approval, the Company will enable the partner processors' intake form/system within the Customer's online DealMaker.tech portal.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2. Customer acknowledges that Company makes no guarantee that Customer will be approved by any third party, and approval is subject to each third party's sole discretion, including, to the extent applicable, its due diligence and compliance policies and procedures. Use of payment processing service(s) is further contingent on the mutual acceptance by Company and Customer of each third party's respective terms, service agreements, and fees (including fees for merchant processing account and ongoing maintenance, which may be applied on a per-issuer basis) to be included as an addendum to this Agreement and/or presented to Customer for acceptance at the time Customer engages third party, and as updated from time to time. Note holdback periods may apply for electronic payment transfer methods, as enforced by processors. Company shall not be deemed responsible for delivery or any interruption or cessation of any services provided by any third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3. All transactions must clear prior to being made available to Customer. US Federal regulations provide investors with 60 days to recall funds. Customer remains liable to immediately and without protestation or delay return any funds recalled by investors for whatever reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.4. Customer agrees that funds deposited into Customer's Account shall remain in Customer's Account and shall not be withdrawn by Customer or a person authorized by Customer, from the Customer's Account prior to Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.5. Company reserves the right to deny, suspend or terminate participation of any investor in the offering to the extent Company, in its sole discretion, deems it advisable or necessary to comply with applicable laws or to eliminate practices that are not consistent with laws, rules, regulations, best practices, or the protection of its reputation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.6. **Holdbacks.** The Customer hereby acknowledges that certain terms apply in respect of electronic or credit card payment to cover against charge-backs and/or rescission (**"Chargeback"**). Chargeback windows can vary in duration and amount. For this reason, a holdback is applied to all funds processed online and deposited in Customer Payment Processing Account. Company shall have the right, in its sole discretion, to revise the amount and duration of any holdback. Unless otherwise advised in writing prior to the Effective Date, the holdback is 5.00% of payments processed, for a ninety (90) day period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7. In the event that a Customer's investor disputes, through their financial institution, a subscription payment made using electronic or credit card payments **("Chargeback Dispute")**, Customer acknowledges that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7.1. If the Chargeback Dispute is initiated by a subscriber before the Customer has accepted the subscriber's investment, the Company shall refund the subscriber, and no further action will be taken.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7.2. If the Chargeback Dispute is initiated by a subscriber after the Customer has accepted the subscriber's investment, the Company shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7.2.1. notify the Customer within twenty-four (24) hours of the Chargeback Dispute; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7.2.2. Provide Customer with five (5) business days to resolve the Chargeback Dispute directly with the subscriber.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7.3. If, after (5) business days, the subscriber and Customer fail to resolve the Chargeback Dispute, Company will submit evidence contesting the Chargeback Dispute, on behalf of the Customer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7.4. Customer agrees to promptly notify Company upon receipt of any Chargeback Dispute notifications, provide all necessary information and documentation requested by the Company to support the Chargeback Dispute and refrain from directly engaging with the payment processor or any other third party regarding the Chargeback Dispute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7.5. Customer acknowledges that contesting a Chargeback Dispute may require the Company to share certain transaction details with third party payment processors. The Customer agrees to (a) only share information necessary to contest the Chargeback Dispute and (b) comply with all applicable data protection and privacy laws when handling Customer data and providing Customer data to Company related to the Chargeback Dispute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7.6. For the avoidance of doubt, although the Company will make best efforts to represent the Customer in contesting a Chargeback Dispute, Company shall not be liable for and bares no responsibility whatsoever for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7.6.1. The outcome of the Chargeback Dispute;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7.6.2. Any fees or penalties imposed by payment processors or financial institutions as a result of the Chargeback or Chargeback Dispute; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7.6.3. Any loss of revenue or business opportunity resulting from the Chargeback or Chargeback Dispute.

**<u>16. Analytics</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1. <u>Data and Analytics</u>. Company reserves the right to collect data relating to Customer's usage of the Software during the Term. Without limiting the generality of the foregoing, Company may collect information relating to: (i) Software use (including the number of users, duration of usage sessions, and number of transactions initiated or completed using the Software); (ii) error information (including error messages and any feedback text submitted via any in-application feedback form); (iii) performance data (including software run time); (iv) user experience information (including time spent on each page of the user interface); and (v) license status information (including confirmation of license activation status). Customer shall have the right to access and use data relating to its usage of the Software for its own purposes, as available through the online dashboard or other reports provided by Company.

**<u>17. Marketing Review Tool</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1. DealMaker's integrated third party marketing review tool is made available to Customer (or its agents) to review Customer's marketing materials and assist Customer in complying with applicable marketing regulations (**"Marketing Review Tool"**). If reviewer is Company, Customer may request that a DealMaker Entity assistant Customer with uploading documentation into the Marketing Review Tool but Company will not perform, and shall not be deemed responsible for performing, any services related to reviewing or analyzing search results. Company is not engaged to perform and will not perform, and shall not be deemed responsible for making any determination as to whether Customer has complied with its obligations under applicable marketing regulations based on information provided by the Marketing Review Tool. Customer and/or its agents (if so designated) shall be responsible for reviewing the results, and determining compliance with applicable marketing legislation and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.2. Use of the Marketing Review Tool is contingent upon Customer's acceptance of third party provider's terms and fees (if applicable) to be presented to the Customer at the time Customer initiates engagement with the Marketing Review Tool.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.3. Company does not make and hereby disclaims any warranty, express or implied with respect to the information provided through the Marketing Review Tool. Customer acknowledges that (i) Company does not guarantee or warrant the correctness, merchantability or fitness for a particular purpose of the information provided through Marketing Review Tool; (ii) Marketing Review Tool is PROVIDED "AS-IS" AND "AS AVAILABLE" AND NEITHER COMPANY NOR ANY OF ITS THIRD PARTY SUPPLIER REPRESENTS OR WARRANTS THAT THE INFORMATION IS CURRENT, COMPLETE OR ACCURATE; and (iii) Customer assumes all risks arising from Company or its agents' use of the Marketing Review Tool.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.4. Notwithstanding anything in the DealMaker Terms of Service, Customer agrees that it shall indemnify, defend and hold harmless Company, its officers, directors, employees and agents, and affiliates that have contributed information to or provided services related to the Marketing Review Tool against any and all direct or indirect losses, claims, demands, expenses (including attorneys' fees and cost) or liabilities of whatever nature or kind arising out of Customer's or its agent's use of the Marketing Review Tool and Customer's use or distribution of any information obtained therefrom.

**<u>Enterprise Customer Terms</u>**

**For DealMaker Customers who have signed an Enterprise Order Form, the Terms apply, as well as the following additional terms. If you are not an Enterprise Customer, these additional terms do not apply to you:**

**<u>18. Definitions</u>**

**"Enterprise Customer"** means a Customer that has entered into an Enterprise Order Form.

**"License"** means the Company's grant to Enterprise Customer of a non-exclusive, non-transferable license for use of the Software by an unlimited number of individual users. Company will designate a DealMaker Enterprise Account to Enterprise Customers with a License.

**"Intended Purpose"** For the purposes of this section, Intended Purpose also includes usage by issuers invited by Enterprise Customer to use Enterprise Customer's Enterprise Account for the above-described purpose.

**"Software"** as it pertains to this section, shall also include any related printed, electronic and online documentation, manuals, training aids, user guides, system administration documentation and any other files that may accompany the Software licensed by Enterprise Customer.

**<u>19. SLA</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1. It is expressly understood and agreed that the Company shall determine its capacity to offer consulting services, only to such extent and at such times and places as may be mutually convenient to the parties. Company shall be free to provide similar services to such other business enterprises or activities as the Company may deem fit without any limitation or restriction whatsoever.

**<u>20. Licensed Intermediary Terms.</u>**

**If Enterprise Customer is a licensed Intermediary (as defined below), the following additional terms apply:**

A. Books and Records

<u>Books and Records.</u> Any and all obligations of Customer related to the storage of books and records including but not limited to, obligations in accordance with Sections 17(a)(1), 17(a)(3) and 17(a)(4) of the Securities Exchange Act of 1934 (**"Exchange Act"** or "SEA") remain the sole obligation of Customer and its clients. Company expressly disclaims any and all responsibility with respect to any regulatory or industry requirements with respect to the Customer and its clients' obligations related to record keeping and maintenance.

B. Regulation CF Offerings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Obligations of the Customer (acting as an Licensed Intermediary):

Where Customer using the Software has been engaged by its client to (i) act as a Broker-Dealer and a licensed Intermediary pursuant to Regulation CF, 17 C.F.R. Part 227 (the **"Regulation CF"**), or (ii) act as a registered Funding Portal and licensed Intermediary pursuant to Regulation CF, in a transaction involving the offer or sale of securities in reliance on section 4(a)(6) of the Securities Act (15 U.S.C. 77d(a)(6)), Customer shall comply with the requirements of Regulation CF (**"Licensed Intermediary"**). For greater certainty, this includes the requirements that Customer shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Register with the Securities and Exchange Commission (**"Commission"**) as either (i) a broker or (ii) a Funding Portal under section 15(b) of the Exchange Act (15 U.S.C. 78o(b)), pursuant to Regulation CF, §227.400;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2. If registering with the Commission as a Funding Portal, refrain from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a. Offering investment advice or recommendations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b. Soliciting purchases, sales or offers to buy the securities displayed on its platform;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Compensate employees, agents, or other persons for such solicitation or based on the sale of securities displayed or referenced on the DealMaker platform; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; d. Hold, manage, possess, or otherwise handle investor funds or securities.

(Regulation CF, §227.300(2)(c))

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Verify that no director, officer or partner of Customer, or any person occupying a similar status or performing a similar function has a prohibited "financial interest in an issuer" as the term is defined in Regulation CF, §227.300(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Have a reasonable basis for believing that Customer's client seeking to initiate an offering of securities under the Regulation has a reasonable basis for keeping accurate records of security holders and is not disqualified to offer securities pursuant to Regulation CF, §227.301(c);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Make available to SEC and to the public, the disclosure required by Regulation CF, §227.201 and §227.303;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6. Provide educational materials to all investors, pursuant to Regulation CF, §227.302(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Verify that Customer's clients are not disqualified from offering securities pursuant to Regulation CF, §227.100(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Only accept an Investor into an offering after (1) the Investor opens an account with Customer, (2) the Investor consents to electronic delivery and the review of the educational materials regarding the offering and (3) Customer has a reasonable basis to believe that the Investor meets the investment limitations in Regulation CF pursuant to Regulation CF, §227.302 and §227.303.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Provide communication channels by which Investors who have opened accounts can communicate with one another and with representatives of the Customer about offerings made available through the Customer or its clients, pursuant to Regulation CF, §227.303(c); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Provide Investors the opportunity to reconsider their investment decision and to cancel their investment commitment until 48 hours prior to the new offering deadline, pursuant to Regulation CF §227.304

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Provide Investors with notice of material changes as described in Regulation CF, §227.304 (**"Notice"**), including but not limited to notice that the investor's investment commitment will be canceled unless the investor reconfirms his or her investment commitment within five business days of receipt of the Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. If registering with the Commission as a Funding Portal, comply with the Conditional Safe Harbor provisions in Regulation CF, §227.402; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. If registering with the Commission as a Funding Portal, implement written policies and procedures reasonably designed to achieve compliance with federal securities laws and the rules and regulations thereunder, relating to its business as a Funding Portal, as required by Regulation CF, §227.402(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. If registering with the Commission as a Funding Portal, manage any reconciliation or reporting questions with the Issuer directly.

(**"Regulation CF Requirements"**)

For greater certainty, the parties acknowledge that Company shall bear no responsibility for or liability whatsoever in connection with the Regulation CF Requirements and Customer shall be solely responsible for ensuring that Customer and its clients comply with Regulation CF.

Further Assurances. When Customer or its clients use the Software for an offering in reliance on Regulation CF, Customer shall verify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The issuer has filed a Form C Offering Statement with the SEC, as described in Regulation CF, §227.203(a), prior to making an offering to the public pursuant to Regulation CF;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2. Issuer complies with marketing and advertising requirements of Regulation CF, §227.204;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Provider is notified of any investor who, having received Customer's Notice pursuant to Regulation CF §227.304, opts-out of their investment and whose investment must therefore be refunded;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Signed and funded subscription agreements, executed by investors who have cleared AML/KYC, are reviewed by the Customer prior to countersignature;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The aggregate amount of all securities sold to all Investors by the Issuer in a single offering during a 12 month period shall not exceed $5,000,000; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Non-accredited Investors (as defined by Rule 501, CFR §230.301) investing in the offering pursuant to Regulation CF do not exceed the maximum investment permitted in a 12 month period per Regulation CF, §227.100.

<u>Payments To Escrow.</u> Customer acknowledges that it shall direct all payments from Investors in respect of a Regulation CF offering to Issuer's Escrow Account. Customer is responsible for (1) applying for escrow account with a DealMaker-selected Escrow Provider; (2) configuring instructions on the DealMaker platform to ensure that all payments are directed to the appropriate Escrow Account; (3) using the DealMaker.tech application to manage closings pursuant to the DealMaker user guide and (4) coordinating with the escrow company managing the Escrow Account to disburse funds upon request from the issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Regulation A/A+ Offerings

Obligations of the Customer. Where Customer has been engaged by its client as a broker-dealer in connection with an offering pursuant to Regulation A, 17 C.F.R. Parts 230.251-230.263 (**"Regulation A"**), the Customer shall verify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Customer shall complete a reasonable due diligence ensuring no anti-fraud or civil liabilities provisions of federal securities laws have been violated. As such, Customer shall maintain a Due Diligence file including the Issuer Agreement (or Selling Agreement); organizational, constating, financial, and administrative support to accept such Issuer engagement; and Issuer's Offering Memoranda, Subscription Document. Further, the Due Diligence folder shall evidence the collection of such documents in a form as described in Customer's Written Supervisory Procedures ("WSPs"). Customer shall create and maintain customer files, including new account, accredited investor, or qualified purchaser questionnaires, including Investor attestations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Issuer has filed a Form 1-A Offering Statement with the SEC, as described in Regulation A, §230.252 and §239.90, prior to making an offering to the public pursuant to Regulation A;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Issuer complies with marketing and advertising requirements of 17 C.F.R. Part II, Securities and Exchange Commission and the SRO, FINRA, including but not limited to, setting up the issuer landing page for the Offering website.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Signed and funded subscription agreements, executed by investors who have cleared AML/KYC, are reviewed by the Customer and a recommendation is made by Customer to Issuer regarding countersignature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5. Prior to enabling countersignature:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Issuer has provided written confirmation to Customer that it has BlueSky notice filed in each state, as applicable depending on the states in which the securities are offered and whether the offering is conducted pursuant to Tier 1 or Tier 2 of Regulation A §230.252; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For the first 25 days of an offering, Customer will monitor investors until the issuer has provided written confirmation that all state BlueSky requirements have been met for the 53 US jurisdictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Issuer and Issuer counsel have taken the steps required to review non-US investors, as required by the applicable international regulations.

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**DEALMAKER SECURITIES LLC ("DMS") CUSTOMER TERMS**

**For any DealMaker Securities Customer, the following additional terms also apply:**

**Broker-Dealer Agreement.** These terms and conditions for DealMaker Securities LLC (**"DMS Terms"**), along with the Order Form and schedules attached to the Order Form create a binding agreement by and between the Customer who has signed the Order Form (**"DMS Customer"**), and DealMaker Securities LLC, a FINRA-registered Broker-Dealer (**"DMS"**)(the **"DMS Agreement"**), as of the Effective Date. DMS Customer may also be considered a Customer of the other DealMaker Entities, depending on the services the Customer purchases.

DMS is a registered broker-dealer providing services in the equity and debt securities market, including offerings conducted via SEC approved exemptions such as Rules 506(b) and 506(c) of Regulation D under the Securities Act of 1933 (the **"Securities Act"**); Regulation A under the Securities Act (**"Regulation A"**); Regulation CF under the Securities Act (**"Regulation CF"**) and others. DMS Customer is offering securities directly to the public in an offering exempt from registration under either Regulation A or Regulation CF (the **"Offering"**). DMS Customer recognizes the benefit of having DMS provide advisory and other services as described herein, on the terms hereof.

Capitalized terms used but not defined in these DMS Terms have the meanings set forth in the Order Form or the Terms. In the event of a conflict between the Terms and the DMS Terms, the DMS Terms shall control.

**<u>1. Appointment & Termination</u>**

DMS Customer hereby engages and retains DMS to provide operations and compliance services at Customer's discretion/ subject to DMS's approval as a FINRA-registered broker-dealer. DMS Customer acknowledges that DMS obligations hereunder are subject to (a) DMS's acceptance of DMS Customer as a customer following DMS's due diligence review and (b) if applicable, issuance by the Financial Industry Regulatory Authority ("FINRA") Department of Corporate Finance of a no objection letter for the Offering.

In addition to the Termination Reasons, DMS may terminate this DMS Agreement if, at any time after the commencement of DMS's due diligence of the potential DMS Customer, DMS reasonably believes that is not advisable to proceed with the contemplated Offering.

**<u>2. Services</u>**

DMS will perform the services listed on the Order Form in connection with the Offering (the **"Services"**).

**<u>3. Fees</u>**

As payment for the Services, DMS Customer shall pay to DMS such fees as described in the Order Form. Transaction-based Fees including equity are earned once the DMS Customer's investors are reviewed by DMS. DMS Customer's acceptance of an investor completes DMS's service obligation at which time fees are due and payable to DMS. DMS Customer authorizes DMS to deduct any fees owing directly from the DMS Customer's bank account or third-party escrow account (if Customer has engaged an escrow provider). In the event this DMS Agreement is terminated in accordance with paragraph 1 of the DMS Terms, any advance against accountable expenses anticipated to be incurred, shall be refunded to the extent said expenses are not actually incurred as of the termination date.

**4.** **<u>Regulatory Compliance</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. DMS Customer and all its third-party providers shall at all times (i) comply with direct reasonable requests of DMS: (ii) maintain all required registrations and licenses, including foreign qualification, if necessary; and (iii) pay all related fees and expenses (including the FINRA corporate filing fee) in each case that are necessary or appropriate to perform their respective obligations under this Agreement. Customer shall comply with and adhere to all DMS policies and procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. DMS Customer shall at all times disclose all compensation received by any third party promoters (including but not limited to social media influencers) in connection with the Offering, in accordance with applicable rules and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. DMS Customer and DMS will have shared responsibility for the review of all documentation related to the Offering but the ultimate discretion about accepting an Investor will be the sole decision of the DMS Customer. Each Investor will be considered to be that of the DMS Customer and NOT that of DMS.

DMS Customer shall advise DMS of each Investor who shall not be accepted into the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. DMS Customer and DMS shall each supervise and train their respective employees, agents, representatives and independent contractors in the performance of functions allocated to them pursuant to the terms of this DMS Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. DMS Customer may request DMS assistance with preparation of the Form C for the Offering and guidance on filing the Form C for the Offering in the SEC-Edgar system but DMS Customer is ultimately responsible for the review and filing the Form C related to the Offering. In the event that DMS Customer files a Form C-W or Form 1-A-W withdrawing its filing in relation to its Offering, DMS Customer agrees to the prompt return to investors of all funds received from investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; f. DMS Customer agrees to

● Provide accurate, complete, and timely information through the online form provided. The filing creation timeline will commence only upon receipt of all required information

● Review all filings with their securities counsel to ensure accuracy before each EDGAR filing. DealMaker Securities, LLC is not liable for errors, omissions, or inaccuracies in filings due to incomplete or inaccurate information provided by the Customer.

 

● Submit requested revisions within the specified review windows, as additional rounds or delays may incur further fees and impact timelines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. If either DMS Customer or DMS receives material communications (orally or in writing) from any Governmental Authority or Self-Regulatory Organization with respect to this Agreement or the performance of either party's obligations thereunder, the receiving party shall promptly provide said communications to the other party, unless such notification is expressly prohibited by the applicable Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. DMS Customer is responsible for the preparation of financial statements using the going concern basis of accounting and required disclosures alerting investors about any underlying financial conditions and management's plans to address them. DMS Customer acknowledges that it must maintain at least six months of operating capital and update investor disclosures to reflect any change in operating capital below this threshold. DMS Customer acknowledges that these updates to investors disclosures will be made in accordance with the advice of the DMS Customer's professional advisors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. DMS Customer is solely responsible for confirming that DMS Customer is authorized to use or wholly owns all DMS Customer intellectual property used in connection with the Offering.

**5.** **<u>Role of DMS</u>**

DMS Customer acknowledges and agrees that it relies on its own judgment in engaging DMS Services. DMS Customer understands and agrees that (i) DMS is not assuming any responsibility for the DMS Customer's underlying business decision to pursue any business strategy or effect any Offering; (ii) DMS makes no representations with respect to the quality of any investment opportunity in connection with the Offering (iii) DMS does not guarantee the performance to or of any Investor in the Offering, (iv) DMS does not guarantee the performance of any third party which provides services to DMS or DMS Customer with respect to the Offering), (v) DMS will make commercially reasonable efforts to perform the Services pursuant to this DMS Agreement, (vi) DMS is not an investment adviser, does not provide investment advice and does not recommend securities transactions and any display of data or other information about the Offering, does not constitute a recommendation as to the appropriateness, suitability, legality, validity, or profitability of any Offering, (vii) DMS Services in connection with this DMS Agreement should not be construed as creating a partnership, joint venture, or employer-employee relationship of any kind, (ix) Services in connection with this DMS Agreement that require registration as a FINRA/SEC registered broker-dealer shall be performed exclusively by DMS or an associated person of DMS, (x) DMS is not providing any accounting, legal or tax advice, and (xi) will use "commercially reasonable efforts" to perform Services pursuant to this DMS Agreement but that this shall not give rise to any express or implied commitment by DMS to purchase or place any of the DMS Customer's securities. DMS <u>Customer explicitly acknowledges that DMS shall not and is under no duty to recommend DMS Customer's security and DMS is not selling DMS Customer's security to retail investors.</u>

**<u>6. Indemnification</u>**

<u>Insufficient Funding For A Claim</u>. If the foregoing indemnification or reimbursement is judicially determined to be unavailable or insufficient to fully indemnify and hold harmless DMS as an indemnified party against a Claim, the DMS Customer will contribute to the amount paid or payable by an indemnified party as a result of such Claim in such proportion as is appropriate to reflect the relative financial benefits of the Offering to the Company, on the one hand, and the indemnified party, on the other hand; or if such allocation is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits but also the relative fault of the DMS Customer on the one hand and the indemnified party on the other hand with respect to such Claim as well as any other relevant equitable considerations. Notwithstanding the preceding paragraphs, in no event will the aggregate amount to be contributed by all indemnified parties towards all Claims and DMS Customer losses, exceed the actual fees received by DMS pursuant to the DMS Agreement.

**<u>7. Witness Reimbursement</u>**

In the event that DMS or any of its employees, officers, directors, affiliates or agents are requested or required to appear as a witness or subpoenaed to produce documents in any action in which the DMS Customer or any of its affiliates is a party to and DMS is not, the DMS Customer will reimburse DMS for all expenses incurred by its employees, officers, directors, affiliates or agents in preparing for and appearing as a witness or producing documents, including the reasonable fees and disbursements of legal counsel.

**<u>8. Notices</u>**

Any notices required by the agreement shall be in writing and shall be addressed, and delivered via email at the email address included in the Order Form.

**<u>9. Confidentiality and Mutual Non-Disclosure:</u>**

Nothing contained herein shall be construed to prohibit the SEC, FINRA, or other government entities from obtaining, reviewing, and auditing any information, records, or data of either party containing Confidential Information, as defined in this Agreement.

<u>Disclosure and Retention Of Confidential Information.</u> DMS is hereby expressly permitted by DMS Customer to disclose Confidential Information to third parties involved in the Offering contemplated herein, provided that DMS Customer has been informed of such disclosure in advance and has approved such disclosure (either orally or in writing). DMS may retain one copy of the DMS Customer's Confidential Information to the extent necessary to comply with industry-specific document retention rules and other regulations, and in an archived computer backup system stored as a result of automated backup procedures for compliance purposes. DMS Customer acknowledges that regulatory record-keeping requirements, as well as securities industry best practices, require DMS to maintain copies of practically all data and communications, even after this Agreement is terminated.

**<u>10. Miscellaneous</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1. **FINRA Arbitration Rules Apply To DMS Customers**. Notwithstanding anything to the contrary in this Agreement, ANY DISPUTE, CONTROVERSY, CLAIM OR CAUSE OF ACTION BETWEEN THE DMS Customer AND DMS DIRECTLY OR INDIRECTLY RELATING TO OR ARISING OUT OF THIS AGREEMENT, OR BREACH THEREOF required or allowed to be conducted by the Financial Industry Regulatory Authority's ("FINRA") rules (including the FINRA Code of Arbitration Procedure for Industry Disputes) shall be arbitrated in accordance with such rules. Any arbitration shall be before a neutral arbitrator or panel of arbitrators selected under the FINRA Neutral List Selection System (or any successor system) and in a forum designated by the Director of FINRA Dispute Resolution or any member of FINRA Staff to whom such Director has delegated authority. In general accordance with FINRA Rule 2268, by signing an arbitration agreement the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.1. This Agreement contains a pre-dispute arbitration clause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.2. Except as otherwise provided in this Agreement, all parties to this Agreement are giving up the right to sue each other in court, including the right to a trial by jury, except as provided by the rules of the arbitration forum in which a claim is filed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.3. Arbitration awards are generally final and binding; a party's ability to have a court reverse or modify an arbitration award is very limited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.4. The ability of the parties to obtain documents, witness statements and other discovery is generally more limited in arbitration than in court proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.5. The arbitrators do not have to explain the reason(s) for their award unless, in an eligible case, a joint request for an explained decision has been submitted by all parties to the panel at least 20 days prior to the first scheduled hearing date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.6. Any panel of arbitrators may include a minority of arbitrators who were or are affiliated with the securities industry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.7. The rules of some arbitration forums may impose time limits for bringing a claim in arbitration. In some cases, a claim that is ineligible for arbitration may be brought in court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.8. The rules of the arbitration forum in which the claim is filed, and any amendments thereto, shall be incorporated into this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.9. As provided in FINRA Rule 2268, no person shall bring a putative or certified class action to arbitration, nor seek to enforce any pre-dispute arbitration agreement against any person who has initiated in court a putative class action; or who is a member of a putative class who has not opted out of the class with respect to any claims encompassed by the putative class action until: (i) the class certification is denied; or (ii) the class is decertified; or (iii) the DMS Customer is excluded from the class by the court. Such forbearance to enforce an agreement to arbitrate shall not constitute a waiver of any rights under this Agreement except to the extent stated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2. **DMS Customer Identifying Information**. Pursuant to the requirements of Title III of Pub. L. 107-56 (the USA Patriot Act), as amended (the **"Patriot Act"**) and other applicable laws, rules and regulations, DMS is required to obtain, verify and record information that identifies the DMS Customer which information includes the name and address of the DM Customer and other information that that allows DMS to identify the DMS Customer in accordance with the Patriot Act and other such laws, rules and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3. **Affiliates of DMS**: DMS Customer acknowledges that agreements with DMS affiliates (also referred to as DealMaker Entities in this Agreement), if any, shall be governed by the DMS affiliates' applicable terms of service and exclusive remedy for DM Reach to recover any Losses against Customer in respect of the Agreement."

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**DEALMAKER REACH, LLC CUSTOMER TERMS**

**For usage of DealMaker Reach Services, the following additional terms apply to you ("Reach** **Terms"):**

**<u>1. THE SERVICES</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1. Overview.** DM Reach shall provide certain digital marketing services as described on the Order Form (collectively, the **"DM Reach Services"**) subject to the following additional terms and conditions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.** Customer shall provide DM Reach with all reasonably necessary materials, company history, financial statements, business and market description, bios of principals and key employees, customers, products, services, tax returns, financial models, systems, pricing, intellectual property, technical specifications, access to social media channels, and all other pre-conditions necessary for providing the DM Reach Services (the **"Information"**).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.** The parties acknowledge and agree that all such Information comes from Customer and that DM Reach does not create such Information and relies on its accuracy, ownership and property. Customer represents and warrants to the DM Reach that all such Information is accurate, true and correct and that, in the event Information changes during the Reach Term (as defined below), Customer shall provide updated Information to DM Reach. Customer further acknowledges that DM Reach bases its DM Reach Services on such Information.

**<u>2. RELATIONSHIP</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1.** DM Reach and Customer are independent contractors in all matters relating to DM Reach Services. DM Reach is not a broker-dealer, investment advisor, investment bank or financial advisor. Nothing in this Agreement shall be construed to create any partnership, joint venture, agency, employment, or any other relationship between the parties. Except for DM Reach's provision of DM Reach Services to Customer in connection with the Marketing Spend, neither party has the authority to act on behalf of or to enter into any contract, incur any liability, or make any representation on behalf of the other party, unless otherwise expressly agreed to in writing signed by both parties. DM Reach has exclusive control over its employees, representatives, agents, contractors and subcontractors, and none of the foregoing shall be deemed to be employees of Customer or eligible to participate in any employment benefit plans or other benefits available to Customer employees. Customer shall exercise no immediate control over the actual means and manner of DM Reach's performance under this Agreement, except to the extent that Customer expects the satisfactory completion of the DM Reach Services under this Agreement. Each party is responsible for its respective employees, representatives, agents, contractors and subcontractors, and the foregoing's compliance with the terms of this Agreement. DM Reach is not and shall not be deemed to be a dealer, broker, finder, intermediary or otherwise entitled to any brokerage, finder's, or other fee or commission in connection with any purchase or sale of securities resulting from DM Reach's general marketing services. DM Reach shall be solely responsible for all local, state and federal tax liabilities arising from any income received under this Agreement, whether cash or stock.

**<u>3. FEES AND EXPENSES</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.** Customer is responsible for all costs and expenses incurred on Customer's behalf in connection with the provision of the DM Reach Services (***"Expenses"***). Any Expenses outside of the agreed budget are subject to Customer's prior written approval. Customer is also responsible for its own costs and expenses incurred in connection with the Offering on the platform, and Customer acknowledges and agrees that the platform charges fees related to the Offering as set forth in the platform's terms and conditions. These platform fees are completely unrelated to DM Reach's compensation as set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2. Budget and Marketing Spend.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.1. As part of engaging DM Reach, Customer is authorizing and directing DM Reach to allocate the marketing and advertising budget expended during the Customer's marketing campaign (***"Marketing Spend"***).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.2. **Partnership Program.** The Partnership Program is an invitation based program in which Customers may have the opportunity to purchase advertising slots in a variety of publications subject to Customer's agreement to the program terms and conditions ("Partnership Program") as part of the Marketing Spend. Customer acknowledges that it may be eligible for the DealMaker Partnership Program, however DM Reach has sole control of whether Customer is admitted to the Partnership Program. Customer acknowledges that DM Reach manages the program and charges fees for the Partnership Program. Customer explicitly acknowledges that DM Reach shall have sole discretion to terminate Customer's participation in the Partnership Program for non-compliance with Partnership Program terms and conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.3. For Customers eligible for the Partnership Program, DM Reach shall have discretion to allocate Marketing Spend during the marketing campaign, except for fees in connection with the placement of partnership advertisements (**"Partnership Fees."**) Once invoiced, Partnership Fees are non-refundable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.4. Customer shall approve Partnership Fees in accordance with required timelines by either (a) executing an authorization for each placement (**"Partnership Insertion Order"**) or (b) pre-approval of a bi-weekly budget for all Partnership Fees (**"Approved Partnership Budget"**) as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Partnership Insertion Order**: Customer shall authorize DM Reach in writing via execution of electronic confirmation to incur Partnership Fees. DM Reach shall not incur Partnership Fees without the written approved Partnership Insertion Order from Customer.

Customer acknowledges that Customer must execute Partnership Insertion Order and prepay DM Reach for all Partnership Fees before DM Reach places an advertisement on Customer's behalf.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Approved Partnership Budget**: On a bi-weekly basis, Customer shall provide written approval of a Partnership Budget. DM Reach shall have full discretion to allocate Partnership Fees for the placement of partnership advertisements up to the bi-weekly Approved Partnership Budget. All Marketing Spend up to the agreed budget amount will be charged directly to Customer's provided payment method.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.5. Customer acknowledges that DM Reach or its affiliates (a) may have an ownership interest in some providers of placement advertisements, details of which are available upon Customer's request; and (b) as a result of DM Reach relationships and negotiated terms with various vendors, certain benefits may accrue to DM Reach or its affiliates including but not limited to additional revenue from certain partnership placements. Unless Customer expressly instructs otherwise, DM Reach may use its discretion in deploying Marketing Spend, including but not limited to approved Partnership Fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3. Customer Representations**. Customer further acknowledges that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.1. Return on Marketing Spend, Partnership spend and/or advertising spend (***"Return"***) can vary greatly with each Offering or campaign and may differ from historical averages, both with respect to DM Reach fees and fees for any third party partners introduced by DM Reach or its affiliates. Historical data, averages and information are not a representation of what can be achieved in any particular Offering or campaign as each Offering and campaign is unique and influenced by numerous external factors including but not limited to the Customer's industry, the Customer's management team, the economic environment at the time of an Offering and the funds available for Marketing Spend and Partnership Fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.2. There are many marketing strategies and tools available to raise capital. Customer is responsible for selecting the capital raising approach that is best suited to Customer's business. DM Reach and its affiliates cannot predict and do not guarantee that a market participant will attain a particular result. The success of an Offering depends on the Customer's own effort, motivation, commitment and follow-through.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.3. Customer may use the marketing assets created pursuant to this Agreement for purposes other than raising capital. For example Marketing Spend and Partnership Fees may be used to create valuable Customer brand collateral, brand positioning, investor mailing lists and investor analytics, regardless of the amount of capital raised. Customer shall be solely responsible for using the marketing assets created pursuant to this Agreement for purposes other than raising capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.4. DM Reach Services may involve, among other things, communicating with third party publishers to secure advertising space for DM Reach Customer (**"Publishers"**). Customer agrees and warrants that it shall not, directly or indirectly, or through a third party, contact said Publishers by any means and shall not interfere with, circumvent, attempt to circumvent, avoid or bypass DM Reach's communication with Publishers, interfere with the relationship between DM Reach and Publishers for the purpose of gaining any benefit, whether such benefit is monetary or otherwise or re-sell paid media or advertising placements to DealMaker Customers without the express written consent of DM Reach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.4 Payment.** The Customer will be billed as set out in the Terms. At the end of the month in which the DM Reach Services are delivered, payment will be automatically debited from the Customer's bank account or credit card on file, with a receipt to be automatically delivered. Invoices will be available for the Customer to review upon request. In respect of **Partnership Fees** only, such fees shall be due and payable on or before the due date on the invoice (**"Due Date"**) using ACH or the Client's pre-authorized payment method on file, unless stated otherwise on the Customer Partnership Insertion Order. DealMaker reserves the right to charge the Client's pre-authorized payment method on file for the amount of the Partnership Fee invoice in Arrears (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.5. Paused DM Reach Services.** Customer may request that DM Reach Services (and corresponding Fees) be paused (**"Pause Date"**). Customer shall pay (a) any Partnership Fees incurred prior to the Pause Date; and (b) DM Reach's monthly service fees for sixty (60) days from the Pause Date. When a campaign is paused, DM Reach may place the campaign in a queue behind other marketing Campaigns that are ready to launch (**"Launch Queue"**). Customer acknowledges that DM Reach may not have staff available to relaunch a paused campaign on the Customer's date of choice. Customer campaign may be relaunched once Customer's campaign reaches the beginning of the Launch Queue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.6. Unpaid Invoices**. Notwithstanding anything to the contrary in the Agreement, in the event that Customer fails to pay all outstanding invoices pursuant to this Agreement, Customer agrees that it shall pay the full amount of the outstanding invoices from the proceeds of the Offering, within seven (7) days of the disbursement of such proceeds to the Customer, plus applicable interest. In the event that a Customer payment for any DM Reach fee fails, Customer has fourteen (14) days to re–connect their bank account or credit card and submit payment for any outstanding invoices. In the event that payment for all outstanding invoices is not cleared within 14 days, all partnership advertisements and DM Reach Services will be paused until payment is received and the Customer's bank account or credit card authorization is restored, except for non-payment of Partnership Fees by Due Date, which shall result in immediate cancellation of the advertising placements. In the event that Customer fails to pay any invoice due and payable (**"Arrears"**) to DM Reach and such Arrears are not cleared or Customer account is not brought back into good standing within 30 days, all DM Reach Services pursuant to this Agreement will be paused and Customer's campaign will be placed at the end of the Launch Queue until payment is received in full. Once payment is received in full, Customer's campaign will move forward through the Launch Queue.

***Customer acknowledges that marketing assets created using DM Reach Services shall not be released to Customer until all outstanding invoices and Arrears are paid in full.*** DM Reach shall have the right to register a lien on any assets or property of the Customer in respect of fees owed and outstanding to DM Reach for more than sixty (60) days.

**<u>4. WORK PRODUCT OWNERSHIP</u>**

**<u>5. ADDITIONAL INDEMNIFICATION</u>**

Notwithstanding and without limitation of any other provision of this Agreement, and notwithstanding whether such losses or damages are foreseeable or unforeseeable, DM Reach shall not be liable under any circumstances whatsoever for any breach by any other Customer Partner, which term includes third party consultants, agents, corporations, partnerships, trusts or any other entities involved in the placement of partnership advertisements, of securities laws or other rule of any securities regulatory authority, for lost profits or for special, indirect, incidental, consequential, exemplary, aggravated or punitive losses or damages. Customer agrees that its liability hereunder shall be absolute and unconditional, regardless of the correctness of any representations of any third parties and regardless of any liability of third parties to DM Reach or any of the Indemnified Parties and shall accrue and become enforceable without prior demand or any other precedent action or proceeding. Customer shall ensure that all agreements with the Customer's Partners include the following indemnity:

"Partner agrees to indemnify, defend and hold Customer and any current or former officers, directors, employees, subsidiaries, affiliates, partners, agents or contractors (**"Representatives"**) harmless from any and all costs, demands, damages, losses, fees, expenses and liabilities (including attorneys' fees and costs) (**"Losses"**) as a result of any third parties demands, regulatory investigations, causes of action, losses, damages, liabilities, costs, fines, claims, class actions and expenses (including reasonable attorney's fees) (**"Claims"**) in connection with the services provided and the content prepared by the Partner for the Offering, unless Customer is proven to have been grossly negligent." The Parties hereby agree that DM Reach shall be a third party beneficiary of such indemnity provisions in the Customer's agreement with Partner in respect of any "Losses" suffered by DM Reach related to the Partner's services in respect of the Offering. The Parties further agree that this remedy shall not be the sole and exclusive remedy for DM Reach to recover any Losses against Customer in respect of the Agreement."

**Customer further agrees that with respect to Publishers who are retained by DM Reach on Customer's behalf to place Customer's advertisements in third party publications, Customer shall indemnify and hold harmless Publishers and their Representatives with respect to any Claims arising from Customer content provided directly or indirectly to Publisher.**

**<u>6. GENERAL</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1. Customer No Unauthorized Usage.** Customer acknowledges that DM Reach Customers must use DealMaker as the platform for their Offering, and Customer must execute a separate Order form with Novation Solutions Inc., o/a DealMaker.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2.** Customer acknowledges that it is engaging in a self-hosted raise. Customer is responsible for carrying out the self-hosted capital raise and bears primary responsibility for the success of its own Offering. Customer understands that DM Reach does not and cannot make any guarantees about Customer's campaign of Offering. No language or provision in this Agreement or any related proposal shall be construed as a guarantee or warranty of any type by DM Reach, including, without limitation, the success of the Customer's campaign or the Offering, the amount of funds raised in the Offering, the costs associated with the capital raised in an Offering or anything relating to the scope of work or quality of work by DM Reach on the Customer's campaign.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.3.** Customer understands and acknowledges that all changes to marketing assets and marketing collateral, including but not limited to, the Customer's website for the Offering and all press releases, must be reviewed according to the terms of Customer's broker-dealer engagement agreement, where Customer has retained a broker-dealer.

![](ex6-33_006.jpg)

## Ex1A-8

**Exhibit 8.1**

**TRI-PARTY ESCROW AGREEMENT**

This ESCROW AGREEMENT ("<u>Agreement</u>") is made and entered into as of _________, 2025, by and among Damon Inc., a British Columbia, Canada corporation (the "<u>Company</u>"), DealMaker Securities LLC, a Delaware limited liability company (the "<u>Managing Broker-Dealer</u>") and ENTERPRISE BANK & TRUST, a Missouri chartered trust company with banking powers (in its capacity as escrow holder, the "<u>Escrow Agent</u>").

<u>RECITALS</u>

This Agreement is being entered into in reference to the following facts:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company intends to offer and sell to prospective investors ("<u>Investors</u>"), as disclosed in its offering materials, in a registered offering pursuant to the Securities Act of 1933, as amended (the "<u>Securities Act</u>"), or as exemption from registration thereunder (the "<u>Offering</u>"), the equity, debt, or other securities of the Company (the "<u>Securities</u>") with a minimum of $10,000.00 (the "<u>Minimum</u>") and a maximum of $30,600,000.00 (the "<u>Maximum</u>"), which includes the investor processing fee, as described in the Company's disclosure materials and the Subscription Agreement (the "<u>Subscription Agreement</u>") applicable to the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In connection with the Offering, the Company and Managing Broker-Dealer desire to establish an Escrow Account (as defined herein) on the terms and subject to the conditions set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of this Agreement, the term "<u>Soliciting Dealer</u>" refers to the Managing Broker-Dealer and any other securities dealer that may be retained by the Managing Broker-Dealer in connection with the Managing Broker-Dealer's services to the Company.

<u>ARTICLE 1-ESCROW FUNDS</u>

1.1 <u>Appointment of Escrow Agent</u>. The Company hereby appoints the Escrow Agent to act as escrow holder for the Escrow Funds (as defined below) under the terms of this Agreement. The Escrow Agent hereby accepts such appointment, subject to the terms, conditions, and limitations hereof.

1.2 <u>Establishment of Escrow</u>. Immediately following the Escrow Agent's execution of this Agreement, the Escrow Agent will open a non-interest bearing bank checking account with Escrow Agent (the "<u>Escrow Account</u>") for the purpose of receiving and holding Cash Deposits (as defined below) and the remaining portion of the Total Purchase Price (as defined below) payable by each Investor (as defined below) in connection with the Offering (the "<u>Escrow Funds</u>").

1.3 <u>Escrow Funds</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Investor or Soliciting Dealer will be instructed by the Company or its Intermediary (as defined herein) to remit to the Company, a predetermined cash deposit (the "<u>Cash Deposit</u>"), as indicated on the applicable Subscription Agreement (as defined below), in the form of a check, draft, wire or ACH payable to the order of "Enterprise Bank & Trust, as Escrow Agent for "Damon Inc.". Following receipt by the Company of an Investor's Cash Deposit, the Company or its Intermediary will promptly: (i) send to the Escrow Agent the Investor's name, address, executed IRS Form W-9 and total purchase price to be remitted for the Securities to be purchased by the Investor (the "<u>Total Purchase Price</u>"), and (ii) remit to the Escrow Agent the Cash Deposit. Escrow Agent shall promptly deposit the Cash Deposit into the Escrow Account, which deposit shall occur within two (2) business days after the Escrow Agent's receipt of the Cash Deposit. For purposes of this Agreement, "<u>Intermediary</u>" shall mean a broker registered under Section 15(b) of the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>"), or a funding portal registered under Regulation CF, 17 C.F.R. Part 227, and includes, where relevant, an associated person of the registered broker or registered funding portal. Notwithstanding the above, if the Company has retained an Intermediary, the Intermediary may instruct an Investor or Soliciting Dealer to remit the Cash Deposit amount in a method authorized by such Intermediary's portal or other website hosted by the Company or Intermediary in connection with the Offering, which may be remitted in the form of a credit card, wire, ACH payment, or other method, payable to the order of "Enterprise Bank & Trust, as Escrow Agent for "Damon Inc." as applicable. Such Cash Deposit amounts shall be paid into the Escrow Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On or prior to the consummation of the Offering, each Investor or Soliciting Dealer may be further instructed by the Company or its Intermediary to remit directly to the Escrow Agent an amount equal to the difference between such Investor's Total Purchase Price and the amount of such Investor's Cash Deposit, in a form of payment as described in Section 1.3(a), payable to the order of "Enterprise Bank & Trust, as Escrow Agent for "Damon Inc." as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Escrow Agent shall have no obligation to accept Escrow Funds or documents from any party other than the Investors, the Soliciting Dealers or the Company. Any checks that are made payable to a party other than the Escrow Agent shall be returned to the party submitting the check, and if received by the Company shall not be remitted to the Escrow Agent. Proceeds in the form of wire or other electronic funds transfers are deemed deposited into the Escrow Account and considered "<u>Collected Funds</u>" when received by the Escrow Agent. Any Proceeds deposited in the form of a check, draft or similar instrument are deemed deposited when the collectability thereof has been confirmed; after such time, such Proceeds are considered "<u>Collected Funds</u>." The Escrow Agent shall have no duty or responsibility to enforce the collection or demand payment of any funds deposited into the Escrow Account. Should any check be deemed uncollectible for any reason, the Escrow Agent will notify the Company of the amount of such return check, the name of the Investor and the reason for return and return the check to the Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Escrow Agent will hold all Escrow Funds in escrow, free from any liens, claims or offsets, and such monies shall not become the property of the Company, the Investor or any Soliciting Dealer, nor shall such monies become subject to the debts thereof or the debts of the Escrow Agent, unless and until the conditions set forth in these instructions to disbursement of such monies have been fully satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Escrow Funds shall be disbursed by the Escrow Agent from the Escrow Account by wire transfer or by a check payable to the appropriate payee(s) in accordance with the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Escrow Agent shall not be required to take any action under this <u>Section 1.3</u> or any other section hereof until it has received proper written instruction from both (i) an Authorized Representative of the Company or authorized representative of its Intermediary and (ii) an Authorized Representative of the Managing Broker-Dealer, delivered in compliance with all applicable laws and pursuant to the terms of this Agreement. Such written instructions shall be in the form prescribed by the applicable Exhibit and signed by all required parties. Except as otherwise expressly contemplated herein, all parties hereby direct and instruct Escrow Agent to accept any payment or other instructions provided by both (i) an Authorized Representative of the Company or authorized representative of its Intermediary and (ii) an Authorized Representative of the Managing Broker-Dealer, and Escrow Agent shall have no duty or obligation to authenticate such payment or other instructions or the authorization thereof. The Escrow Agent shall not be required to release any funds that constitute Escrow Funds unless the funds represented thereby are Collected Funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Company, any Intermediary, and the Managing Broker-Dealer shall conduct all aspects of the Offering in full compliance with all applicable law, including all federal and state securities laws.

1.4 <u>Investments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All funds in the Escrow Account will be held by Escrow Agent in a non-interest bearing bank account at Escrow Agent. The Escrow Funds will not earn interest.

1.5 <u>Cancellation of Subscriptions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company may reject or cancel any Investor's offer to purchase Securities (the "<u>Subscription</u>"), in whole or in part. If all or any portion of the Total Purchase Price for such rejected or canceled Subscription has been delivered to the Escrow Agent, then the Company or its Intermediary will inform Escrow Agent in writing of the rejection or cancellation, and instruct Escrow Agent in writing in the form of <u>Exhibit "C"</u> attached hereto to refund some or all of the Escrow Funds. Such instruction must be made and delivered in compliance with all applicable state and federal rules and regulations, including, but not limited to, the Securities Act and signed by an Authorized Representative of the Company or authorized representative of the Intermediary.

<u>ARTICLE 2-DISBURSEMENT PROCEDURES</u>

2.1 <u>Disbursement of Proceeds</u>. Escrow Agent shall hold and disburse the Escrow Funds in accordance with the following procedures:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the provisions of <u>Section 2.1(b)</u> through <u>Section 2.1(g)</u>, in the event Escrow Agent receives Collected Funds for the Minimum Offering prior to the termination of this Agreement, and for any point thereafter, and from time to time, promptly after the Escrow Agent's receipt of written instructions from both (i) an Authorized Representative of the Company or authorized representative of its Intermediary and (ii) an Authorized Representative of the Managing Broker-Dealer in the form of <u>Exhibit "A"</u> attached hereto, the Escrow Agent shall disburse (by wire transfer or by a check payable to the appropriate payee(s)) the principal amount of all Escrow Funds then held by Escrow Agent, or such lesser amount as may be specified in such written instructions (but not less than the amount covered by the Minimum Offering) in accordance with such written instructions, as provided from time to time. Escrow Funds shall be distributed within one (1) business day of the Escrow Agent's receipt of such written instructions, which must be received by the Escrow Agent no later than 1:00 p.m. Central Standard time on a business day for the Escrow Agent to process such instructions that business day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Escrow Agent shall continue to accept deposits of additional Escrow Funds until a date (the "<u>Final Closing Date</u>") which is the earlier of (i) the date on which the Escrow Agent receives written notification, signed by both (A) an Authorized Representative of the Company or an authorized representative of the Intermediary and (B) an Authorized Representative of the Managing Broker-Dealer, that the Company has accepted Subscriptions for the Maximum Offering, or (ii) the date on which the Escrow Agent receives written notification, signed by both (A) an Authorized Representative of the Company or an authorized representative of the Intermediary and (B) an Authorized Representative of the Managing Broker-Dealer, of a final closing date for receipt of Escrow Funds. Promptly from and after the Final Closing Date, the Escrow Agent shall return directly to the Investor, the principal amount of any Escrow Funds received by the Escrow Agent after the Final Closing Date and shall cease to accept any additional Escrow Funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If both (i) an Authorized Representative of the Company or authorized representative of its Intermediary and (ii) an Authorized Representative of the Managing Broker-Dealer give written notice to the Escrow Agent of the termination or withdrawal of the Offering, in the form of <u>Exhibit "B"</u> attached hereto, then promptly after such notification, the Escrow Agent shall return, as a complete distribution, each Investor's Escrow Funds, without deduction, penalty, or expense, to such Investor in the same method as the Investor caused payment pursuant to <u>Section 1.3(a)</u>; provided, however, that to the extent an Investor's Escrow Funds were received by Escrow Agent from a qualified intermediary, such funds shall be returned to such qualified intermediary. In the event of the termination of the Offering pursuant to this <u>Section 2.1(c)</u>, the Escrow Funds shall not under any circumstance be returned to the Soliciting Dealers or the Company. The Company represents, warrants, and agrees that the Escrow Funds returned to each Investor (or to such Investor's qualified intermediary) are and shall be free and clear of any and all claims of the Company and its creditors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If an Investor is entitled to terminate its Subscription, or the Company rejects such Subscription in whole or in part, for which the Escrow Agent has received Escrow Funds, the Escrow Agent shall, upon a written instruction signed by both (i) an Authorized Representative of the Company or authorized representative of its Intermediary and (ii) an Authorized Representative of the Managing Broker-Dealer, in the form of <u>Exhibit "C"</u> attached hereto, promptly return directly to such Investor that portion of the Escrow Funds associated with such Investor and specified in the written instruction in the same method as the Investor caused payment pursuant to <u>Section 1.3(a)</u>. If the Escrow Agent has not yet collected funds but has submitted the Investor's check for collection, the Escrow Agent shall promptly return the funds in the amount of the Investor's check to such Investor after such funds have been collected. If the Escrow Agent has not yet submitted such Investor's check for collection, the Escrow Agent shall promptly remit the Investor's check directly to the Investor. If applicable, any disbursement instructions shall be delivered in compliance with Regulation CF, 17 C.F.R. 227.304.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If an Investor elects to remit the Total Purchase Price for such Investor's purchase of the Securities in lieu of applying the Investor's Cash Deposit to the Purchase Price, the Escrow Agent shall, upon the written request of both (i) an Authorized Representative of the Company or authorized representative of its Intermediary and (ii) an Authorized Representative of the Managing Broker-Dealer, promptly return directly to such Investor, in the same method as the Investor caused payment pursuant to <u>Section 1.3(a)</u>, the Cash Deposit deposited in the Escrow Account on behalf of such Investor. If the Escrow Agent has not yet collected funds but has submitted the Investor's check for the Cash Deposit for collection, the Escrow Agent shall promptly return the funds in the amount of the Investor's check to such Investor after such funds have been collected. If the Escrow Agent has not yet submitted such Investor's check for collection, the Escrow Agent shall promptly remit the Investor's check directly to the Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If any date that is a deadline under this Agreement for giving the Escrow Agent notice or instructions or for the Escrow Agent to take action is not a business day, then such date shall be the business day that immediately precedes such date. A "<u>business day</u>" is any day other than a Saturday, Sunday or any other day on which banking institutions located in the state of Missouri, are authorized or obligated by law or executive order to close.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Any delivery of written disbursement and other instructions by an Authorized Representative of the Company, Authorized Representative of the Managing Broker-Dealer, or an authorized representative of an Intermediary pursuant to this Article 2 shall be made in compliance with all applicable state and federal rules and regulations, including, but not limited to, the Securities Act and the Exchange Act.

<u>ARTICLE 3- GENERAL ESCROW PROCEDURES</u>

3.1 <u>Accounts and Records</u>. Escrow Agent shall keep accurate books and records of all transactions hereunder. The Company shall be responsible for maintaining accurate books and records as to owners of the beneficial interest in the Escrow. The Company and Escrow Agent shall each have reasonable access to one another's books and records concerning the Offering and the Escrow Account. Upon final disbursement of the Escrow Funds, the Escrow Agent shall deliver to the Company a complete accounting of all transactions relating to the Escrow Account.

3.2 <u>Duties</u>. Escrow Agent's duties and obligations hereunder shall be determined solely by the express provisions of this Agreement. Escrow Agent's duties and obligations are purely ministerial in nature, and nothing in this Agreement shall be construed to give rise to any fiduciary obligations of the Escrow Agent with respect to the Investors or to the other parties to this Agreement. Without limiting the generality of the foregoing, the Escrow Agent is not charged with any duties or responsibilities with respect to any documentation associated with the Offering and shall not otherwise be concerned with the terms thereof. For purposes of communications and directives, the Escrow Agent shall not accept any instructions from a Soliciting Dealer participating in the Offering. The Escrow Agent shall not be required to notify or obtain the consent, approval, authorization, or order of court or governmental body to perform its obligations under this Agreement, except as expressly provided herein. The parties agree that Escrow Agent shall not be required to expend or risk any of its own funds or otherwise incur any liability, financial or otherwise, in the performance of any of its duties hereunder.

3.3 <u>Liability Limited</u>. Escrow Agent shall not be liable to anyone whatsoever by any reason of error of judgment or for any act done or step taken or omitted by them in good faith or for any mistake of fact or law or for anything which they may do or refrain from doing in connection herewith unless caused by or arising out of their own gross negligence or willful misconduct. In no event shall the Escrow Agent be liable for any indirect, special, consequential damages, or punitive damages. Escrow Agent shall have no responsibility to ensure anyone's compliance with any securities laws in connection with the Offering, and Escrow Agent shall not be required to inquire as to the performance or observation of any obligation, term or condition under any other agreements or arrangements.

3.4 <u>Fees</u>. The Company shall pay the Escrow Agent the fees based on the fee schedule attached hereto as <u>Exhibit "D"</u>. In addition, the Company shall be obligated to reimburse the Escrow Agent for all fees, costs and expenses incurred or that become due in connection with this Agreement or the Escrow Account, including reasonable attorneys' fees. Neither the modification, cancellation, termination or rescission of this Agreement nor the resignation or termination of the Escrow Agent shall affect the right of the Escrow Agent to retain the amount of any fee which has been paid, or to be reimbursed or paid any amount which has been incurred or becomes due, prior to the effective date of any such modification, cancellation, termination, resignation or rescission. Escrow Agent is hereby authorized by the Company to deduct from the Escrow Fund any fees not timely paid, and any unpaid fees before final distribution of the Escrow Fund to the Company in accordance with this Agreement; provided, however, that no fees shall be deducted from any amount of Escrow Funds to be returned to Investors. To the extent the Escrow Agent has incurred any such expenses, or any such fee becomes due, prior to any closing, the Escrow Agent shall advise the Company and the Company shall direct all such amounts to be paid directly at any such closing.

3.5 <u>Exculpation</u>. Escrow Agent's duties hereunder shall be strictly limited to the safekeeping of monies, instruments or other documents received by the Escrow Agent and any further responsibilities expressly provided in this Agreement. The Escrow Agent will not be liable for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the genuineness, sufficiency, correctness as to form, manner or execution or validity of any instrument deposited in the Escrow, nor the identity, authority or rights of any person executing the same;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any misrepresentation or omission in any documentation associated with the Offering or any failure to keep or comply with any of the provisions of any agreement, contract, or other instrument referred to therein; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the failure of any Soliciting Dealer or Investor to transmit, or any delay in transmitting, any Investor's Purchase Price to the Company or Escrow Agent.

3.6 <u>Interpleader</u>. If (i) conflicting demands are made or notice served upon the Escrow Agent with respect to the escrow or (ii) the Escrow Agent is otherwise uncertain as to its duties or rights hereunder, then the Escrow Agent shall have the absolute right at its election to do either or both of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) withhold and stop all further proceedings in, and performance of, this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) file a suit in interpleader and obtain an order from the court requiring the parties to litigate their several claims and rights among themselves. In the event such interpleader suit is brought, the Escrow Agent shall be fully released from any obligation to perform any further duties imposed upon it hereunder, and the Company shall pay the Escrow Agent actual costs, expenses and reasonable attorney's fees expended or incurred by Escrow Agent, the amount thereof to be fixed and a judgment thereof to be rendered by the court in such suit.

3.7 <u>Indemnification and Contribution</u>. The Company and the Managing Broker-Dealer (each, an "<u>Indemnifying Party</u>") jointly and severally agree to defend, indemnify and hold Escrow Agent and its affiliates and their respective directors, officers, agents ("<u>Indemnified Parties</u>") harmless from and against all costs, damages, judgments, attorneys' fees, expenses, obligations and liabilities of any kind or nature ("<u>Damages</u>") to the fullest extent permitted by law, from and against any Damages or liabilities related to or arising out of this Agreement which the Indemnified Parties may reasonably incur or sustain in connection with or arising out of the escrow or this Agreement and will reimburse the Indemnified Parties for all expenses (including attorneys' fees) as they are incurred by the Indemnified Parties in connection with investigating, preparing or defending any such action or claim whether or not in connection with pending or threatened litigation in which the Indemnified Parties is or are a party; <u>provided</u>, however, the Indemnifying Party will not be responsible for Damages or expenses which are finally judicially determined to have resulted from an Indemnified Party's gross negligence or willful misconduct. The provisions of this section shall survive the termination of this Agreement and any resignation of the Escrow Agent.

3.8 <u>Compliance with Orders</u>. If at any time Escrow Agent is served with any judicial or administrative order, judgment, decree, writ or other form of judicial or administrative process which in any way affects the Escrow Funds (including but not limited to orders of attachment or any other forms of levies or injunctions or stays relating to the transfer of the Escrow Funds), Escrow Agent is authorized to comply therewith in any manner as it or its legal counsel of its own choosing deems appropriate; and if Escrow Agent complies with any such judicial or administrative order, judgment, decree, writ or other form of judicial or administrative process, Escrow Agent shall not be liable to any of the parties hereto or to any other person or entity even though such order, judgment, decree, writ or process may be subsequently modified or vacated or otherwise determined to have been without legal force or effect.

3.9 <u>Resignation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Escrow Agent may resign as escrow holder hereunder upon fourteen (14) days prior written notice to the Company and shall thereupon be fully released from any obligation to perform any further duties imposed upon it hereunder. The Company and Managing Broker-Dealer shall promptly appoint a successor escrow agent. The Escrow Agent will transfer all files and records relating to the Escrow and Escrow Account to any successor escrow holder mutually agreed to in writing by the Company and Managing Broker-Dealer upon receipt of a copy of the executed escrow instructions designating such successor. If the Company and Managing Broker-Dealer have failed to appoint a successor escrow agent prior to the expiration of fourteen (14) calendar days following the delivery of such notice of resignation from Escrow Agent, the Escrow Agent may petition any court of competent jurisdiction for the appointment of a successor escrow agent or for other appropriate relief, and any such resulting appointment shall be binding upon the Company and Managing Broker-Dealer. The Company and Managing Broker-Dealer shall be jointly and severally liable for Escrow Agent's costs and expenses including attorneys incurred in such proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the case of a resignation of the Escrow Agent, the Escrow Agent shall have no responsibility for the appointment of a successor escrow agent hereunder. The successor escrow agent appointed by the Company and Managing Broker-Dealer shall execute, acknowledge and deliver to the Escrow Agent and the other parties an instrument in writing accepting its appointment hereunder. Thereafter, the Escrow Agent shall deliver all of the then-remaining balance of the Escrow Funds, less any expenses then incurred by and unpaid to the Escrow Agent, to such successor escrow agent in accordance with the joint written direction of the Company and Managing Broker-Dealer and upon receipt of the Escrow Funds, the successor escrow agent shall be bound by all of the provisions of this Agreement.

3.10 <u>Filings and Resolution</u>. Concurrently or prior to the execution and delivery of this Agreement, the Company shall deliver to the Escrow Agent a copy of its certificate of formation or other charter documents, resolutions, and any other account agreements requested by Escrow Agent.

3.11 <u>Authorized Representatives</u>. The Company hereby identifies to Escrow Agent the officers, employees or agents designated on Schedule I attached hereto as an authorized representative (each, an "<u>Authorized Representative</u>") with respect to any notice, certificate, instrument, demand, request, direction, instruction, waiver, receipt, consent or other document or communication required or permitted to be furnished to Escrow Agent. Schedule I may be amended and updated by written notice to Escrow Agent. Escrow Agent shall be entitled to rely on such original or amended Schedule I with respect to any party until a new Schedule I is furnished by such party to Escrow Agent. The Managing Broker-Dealer hereby agrees that any of its officers, employees or agents shall have authority to sign any notice, certificate, instrument, demand, request, direction, instruction, waiver, receipt, consent or other document or communication required or permitted to be furnished to Escrow Agent. If applicable, the Company hereby identifies to Escrow Agent the officers, employees or agents of any Intermediary designated on Schedule I attached hereto as an authorized representative of the Intermediary with respect to any instruction or notice that such Intermediary is required or eligible to give pursuant to this Agreement, including with respect to the disbursement of Escrow Funds and other cash.

3.12 <u>Term</u>. The term of this Agreement shall commence as of the date first above written and shall end on the date that all funds in the Escrow Account are disbursed pursuant to this Agreement and all reporting obligations specified herein have been satisfied.

3.13 <u>Identification Number</u>. The Company represents and warrants that (a) its Federal tax identification number ("TIN") specified on the signature page of this Agreement underneath its signature is correct and is to be used for 1099 tax reporting purposes, and (b) it is not subject to backup withholding. The Company shall provide the Escrow Agent with the TIN and verification that the person or entity is not subject to backup withholding for any person or entity to whom interest is paid on any of the Proceeds, if applicable. Such verification may be evidenced by providing the Escrow Agent a Subscription Agreement containing appropriate language or a copy of a W-9.

3.14 <u>Reliance</u>. When Escrow Agent acts on any communication (including, but not limited to, communication with respect to the transfer of funds) sent by electronic transmission, Escrow Agent, absent gross negligence or willful misconduct, shall not be responsible or liable in the event such communication is not an authorized or authentic communication of the party involved or is not in the form the party involved sent or intended to send (whether due to fraud, distortion or otherwise). Escrow Agent shall not be liable for any losses, costs or expenses arising directly or indirectly from Escrow Agent's reliance upon and compliance with such instructions notwithstanding such instructions conflict or are inconsistent with a subsequent written instruction. The Company and the Managing Broker-Dealer agree to assume all risks arising out of the use of such electronic transmission to submit instructions and directions to Escrow Agent, including without limitation the risk of Escrow Agent acting on unauthorized instructions, and the risk or interception and misuse by third parties.

3.15 <u>Force Majeure</u>. Escrow Agent shall not incur liability for not performing any act or not fulfilling any duty, obligation or responsibility hereunder by reason of any occurrence beyond the control of Escrow Agent (including but not limited to any act or provision of any present or future law or regulation or governmental authority, pandemic or public health emergency, any act of God or war, terrorism or the unavailability of the Federal Reserve Bank or other wire or communication facility).

<u>ARTICLE 4- GENERAL PROVISIONS</u>

4.1 <u>Notice</u>. Any notice, request, demand or other communication provided for hereunder to be given shall be in writing and shall be delivered personally, by certified mail, return receipt requested, postage prepaid, or by transmission by a telecommunications device, and shall be effective (a) on the day when personally served, including delivery by overnight mail and courier service, (b) on the third business day after its deposit in the United States mail, and (c) on the business day of confirmed transmission by telecommunications device. The addresses of the parties hereto (until notice of a change thereof is served as provided in this <u>Section 4.1</u>) shall be as follows:

---

| | |
|:---|:---|
| To the Managing Broker-Dealer:<br>DealMaker Securities, LLC<br> 4000 Eagle Point Corporate Drive, Suite 950<br> Birmingham, Alabama, 35242<br> Attn: Johnathan Self<br> 647-236-9021<br> Jself@dealmakersecurities.com<br>| To the Company:<br>Damon Inc.<br> 4601 Canada Way, Suite #402<br> Burnaby, British Columbia<br> Canada, V5G 4X7<br> Attn: Bal Bhullar<br> 236-326-3619<br> bal@damon.com |
| To the Escrow Agent:<br>Enterprise Bank & Trust<br> Attn: Specialty Banking Group, Escrow<br> 1281 N. Warson<br> St. Louis, Missouri 63132<br> sbg@enterprisebank.com<br>with a copy to: Legal Department via email legaltracking@enterprisebank.com  |  |

---

4.2 <u>Amendments</u>. Except as otherwise permitted herein, this Agreement may be modified only by a written amendment signed by the parties hereto, and no waiver of any provision hereof will be effective unless expressed in a writing signed by the parties hereto.

4.3 <u>Wiring Instructions</u>. In the event fund transfer instructions are given, such instructions must be communicated to Escrow Agent in writing delivered pursuant to <u>Section 4.1</u>. Escrow Agent shall seek confirmation of such instructions by telephone call-back to an Authorized Representative (in the case of the Company), authorized representative of the Intermediary, or other authorized person, and Escrow Agent may rely upon the confirmations of anyone purporting to be the Authorized Representative of the Company, authorized representative of the Intermediary, or other authorized person so designated. Escrow Agent and the beneficiary's bank in any funds transfer may rely solely upon any account numbers or similar identifying numbers provided by the Company or the Intermediary to identify (i) the beneficiary, (ii) the beneficiary's bank, or (iii) an intermediary bank. Escrow Agent may apply any of the Escrow Funds for any payment order it executes using any such identifying number, even when its use may result in a person other than the beneficiary being paid, or the transfer of funds to a bank other than the beneficiary's bank or an intermediary bank designated. The parties to this Agreement acknowledge that such security procedure is commercially reasonable.

4.4 <u>Notifications</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Escrow Agent may, but need not, honor and follow instructions, amendments or other orders ("orders") which shall be provided by telephone facsimile transmission ("faxed") to the Escrow Agent in connection with this Agreement and may act thereon without further inquiry and regardless of whom or by what means the actual or purported signature of the Company may have been affixed thereto if such signature in Escrow Agent's sole judgment resembles the signature of the Company. The Company indemnifies and holds the Escrow Agent free and harmless from any and all liability, suits, claims or causes of action which may arise from loss or claim of loss resulting from any forged, improper, wrongful or unauthorized faxed order. The Company shall pay all actual attorney fees and costs reasonably incurred by the Escrow Agent (or allocable to its in-house counsel), in connection with said claim(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Furthermore, all parties hereby agree that all current and future notices, confirmations and other communications regarding this Agreement specifically, and future communications in general between the parties, may be made by email, sent to the email address of record as set forth above or, solely with regards to business in the normal course, as otherwise from time to time changed or updated, directly by the party changing such information, without necessity of confirmation of receipt, delivery or reading, and such form of electronic communication is sufficient for all matters regarding the relationship between the parties. If any such electronically-sent communication fails to be received for any reason, including but not limited to such communications being diverted to the recipients' spam filters by the recipients email service provider or technology, or due to a recipients' change of address, or due to technology issues by the recipients' service provider, the parties agree that the burden of such failure to receive is on the recipient and not the sender, and that the sender is under no obligation to resend communications via any other means, including but not limited to postal service or overnight courier, and that such communications shall for all purposes, including legal and regulatory, be deemed to have been delivered and received.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company is responsible for the accuracy and completeness of all communications given by it including those given pursuant to electronic means, including but not limited to email, internet, facsimile or text. Escrow Agent shall not be responsible for any interruption in such communication services and the Company shall be responsible for security of all such services.

4.5 <u>Assignment</u>. Except as permitted in this Section 4.5, neither this Agreement nor any rights or obligations hereunder may be assigned by any party hereto without the express written consent of each of the other parties hereto. This Agreement shall inure to and be binding upon the parties hereto and their respective successors, heirs and permitted assigns. Any corporation into which Escrow Agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which Escrow Agent will be a party, or any corporation succeeding to all or substantially all the business of Escrow Agent will be the successor of Escrow Agent hereunder without the execution or filing of any paper with any party hereto or any further act on the part of any of the parties hereto except where an instrument of transfer or assignment is required by law to effect such succession, anything herein to the contrary notwithstanding.

4.6 <u>USA Patriot Act</u>. The Company shall provide to Escrow Agent such information as Escrow Agent may reasonably require to permit Escrow Agent to comply with its obligations under the federal USA PATRIOT Act (Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001). Escrow Agent shall not make any payment of all or a portion of the Escrow Fund, to any person unless and until such person has provided to Escrow Agent such documents as Escrow Agent may require to permit Escrow Agent to comply with its obligations under such Act. Further, Company represents and warrants to Escrow Agent that if it is a hedge fund, it will promptly notify Escrow Agent and enter into any agreement or provide any documentation requested by Escrow Agent.

4.7 <u>Termination</u>. This Agreement shall terminate when all the Escrow Funds have been disbursed or returned in accordance with the provisions of this Agreement.

4.8 <u>Time of Essence</u>. Time is of the essence of these and all additional or changed instructions.

4.9 <u>Counterparts</u>. This Agreement may be executed in counterparts, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original, and said counterparts together shall constitute one and the same instrument.

4.10 <u>Governing Law and Jurisdiction</u>. This Agreement shall be governed by, and shall be construed according to, the laws of the State of Missouri. The parties hereby irrevocably submit to the exclusive jurisdiction of the state courts of St. Louis County, Missouri or, if proper subject matter jurisdiction exists, the United States District Court for the Eastern District of Missouri, in any action or proceeding arising out of or relating to this Agreement. Each party hereto further irrevocably consents to the service of any complaint, summons, notice or other process relating to any such action or proceeding by delivery thereof to it by hand or by registered or certified mail, return receipt requested, in the manner provided for herein. Each party hereto hereby expressly and irrevocably waives any claim or defense in any such action or proceeding based on improper venue or *forum non conveniens* or any similar basis.

4.11 <u>Waiver of Jury Trial</u>. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT CANNOT BE WAIVED, EACH PARTY HEREBY EXPRESSLY, INTENTIONALLY, AND DELIBERATELY WAIVES, AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE, CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING IN WHOLE OR IN PART UNDER, RELATED TO, BASED ON OR IN CONNECTION WITH THIS AGREEMENT OR THE SUBJECT MATTER HEREOF, WHETHER NOW EXISTING OR HEREAFTER ARISING AND WHETHER SOUNDING IN TORT OR CONTRACT OR OTHERWISE (EACH, A "CLAIM"). ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION 4.11 WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY. In the event that the waiver of jury trial set forth in the previous sentence is not enforceable under the law applicable to this Agreement, the parties to this Agreement agree that any Claim, including any question of law or fact relating thereto, shall, at the written request of any party, be determined by judicial reference pursuant to Missouri law. The parties shall select a single neutral referee, who shall be a retired state or federal judge. In the event that the parties cannot agree upon a referee, the court shall appoint the referee. The referee shall report a statement of decision to the court. Nothing in this paragraph shall limit the right of any party at any time to exercise self-help remedies, foreclose against collateral or obtain provisional remedies. The parties shall bear the fees and expenses of the referee equally, unless the referee orders otherwise. The referee shall also determine all issues relating to the applicability, interpretation, and enforceability of this paragraph. The parties acknowledge that if a referee is selected to determine the Claims, then the Claims will not be decided by a jury.

4.12 <u>Use of Name</u>. The Company and the Managing Broker-Dealer will not make any reference to Enterprise Bank & Trust in connection with the Offering except with respect to its role as Escrow Agent hereunder, and in no event will the Company or the Managing Broker-Dealer state or imply the Escrow Agent has investigated or endorsed the Offering in any manner whatsoever.

IN WITNESS WHEREOF, the parties have executed this Agreement pursuant to due authority as of the date set forth above.

---

| | |
|:---|:---|
| **Company:** | **Company:** |
| Damon Inc. | Damon Inc. |
| a British Columbia corporation | a British Columbia corporation |
| By: |  |
| Name: | Baljinder Bhullar |
| Its: | CFO |
| **Managing Broker-Dealer:** | **Managing Broker-Dealer:** |
| DealMaker Securities, LLC | DealMaker Securities, LLC |
| a Delaware limited liability company | a Delaware limited liability company |
| EIN: 86-3978437 | EIN: 86-3978437 |
| By: |  |
| Name: | Jonathan Self |
| Its: | CCO |
| **Escrow Agent:** | **Escrow Agent:** |
| Enterprise Bank & Trust | Enterprise Bank & Trust |
| By: |  |
| Name: | Ernesto Maldonado |
| Its: | SVP, Specialty Escrow Officer |

---

**EXHIBIT A**

**DISBURSEMENT NOTICE**

**DISBURSEMENT OF OFFERING PROCEEDS**

To the Escrow Agent:

Enterprise Bank & Trust

Attn: Specialty Banking Group, Escrow

1281 N. Warson

St. Louis, Missouri 63132

[DATE]

Re: Escrow Account No. [\*\*\*\*\*\*\*\*\*\*\*\*\*]

Dear Escrow Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Reference is made to that certain Escrow Agreement dated as of July 21, 2025 (the "<u>Escrow Agreement</u>") by and among Damon Inc., a British Columbia corporation, (the "<u>Company</u>"), DealMaker Securities LLC, a Delaware limited liability company (the "<u>Managing Broker-Dealer</u>") and ENTERPRISE BANK & TRUST (in its capacity as escrow holder, the "<u>Escrow Agent</u>"). All terms used but not defined herein shall have the respective meanings given such terms in the Escrow Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Company hereby certifies that the Company has received and accepted subscriptions with gross proceeds of at least $_____________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. You are hereby directed to disburse Escrow Funds in the amount of $_____________ to the Company as follows: ________________________________________________

[*SIGNATURE PAGE FOLLOWS*]

IN WITNESS WHEREOF, the undersigned has executed this statement as of the date first hereinabove set forth.

---

| | | |
|:---|:---|:---|
|  | **Company:** | **Company:** |
|  | Damon Inc. | Damon Inc. |
|  | a British Columbia corporation | a British Columbia corporation |
|  | By: | |
|  | Name: | Baljinder Bhullar |
|  | Its: | CFO |
|  | **Managing Broker-Dealer:** | **Managing Broker-Dealer:** |
|  | DealMaker Securities, LLC | DealMaker Securities, LLC |
|  | a Delaware limited liability company | a Delaware limited liability company |
|  | EIN: 86-3978437 | EIN: 86-3978437 |
|  | By: | |
|  | Name: | Jonathan Self |
|  | Its: | CCO |
| ACKNOWLEDGED by: |  |  |
|  | **Escrow Agent:** | **Escrow Agent:** |
|  | Enterprise Bank & Trust | Enterprise Bank & Trust |
|  | By: |  |
|  | Name: | Ernesto Maldonado |
|  | Its: | SVP, Specialty Escrow Officer |

---

**EXHIBIT B**

**DISBURSEMENT NOTICE TERMINATION**

To the Escrow Agent:

Enterprise Bank & Trust

Attn: Specialty Banking Group, Escrow

1281 N. Warson

St. Louis, Missouri 63132

[DATE]

Re: Escrow Account No. [\*\*\*\*\*\*\*\*\*\*\*\*\*\*]

Dear Escrow Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Reference is made to that certain Escrow Agreement dated as of July 21, 2025 (the "<u>Escrow Agreement</u>") by and among Damon Inc., a British Columbia corporation (the "<u>Company</u>"), DealMaker Securities LLC, a Delaware limited liability company (the "<u>Managing Broker-Dealer</u>") and ENTERPRISE BANK & TRUST (in its capacity as escrow holder, the "<u>Escrow Agent</u>"). All terms used but not defined herein shall have the respective meanings given such terms in the Escrow Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Company has terminated the Offering prior to the disbursement of offering proceeds pursuant to Section 2.1(c) of the Escrow Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. You are hereby directed to disburse the Escrow Funds to Investors as follows:

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the undersigned has executed this statement as of the date first hereinabove set forth.

---

| | | |
|:---|:---|:---|
|  | **Company:** | **Company:** |
|  | Damon Inc. | Damon Inc. |
|  | a British Columbia corporation | a British Columbia corporation |
|  | By: | |
|  | Name: | Baljinder Bhullar |
|  | Its: | CFO |
|  | **Managing Broker-Dealer:** | **Managing Broker-Dealer:** |
|  | DealMaker Securities, LLC | DealMaker Securities, LLC |
|  | a Delaware limited liability company | a Delaware limited liability company |
|  | EIN: 86-3978437 | EIN: 86-3978437 |
|  | By: | |
|  | Name: | Jonathan Self |
|  | Its: | CCO |
| ACKNOWLEDGED by: |  |  |
|  | **Escrow Agent:** | **Escrow Agent:** |
|  | Enterprise Bank & Trust | Enterprise Bank & Trust |
|  | By: |  |
|  | Name: | Ernesto Maldonado |
|  | Its: | SVP, Specialty Escrow Officer |

---

**EXHIBIT C**

**DISBURSEMENT NOTICE CANCELLATION OF SUBSCRIPTION**

To the Escrow Agent:

Enterprise Bank & Trust

Attn: Specialty Banking Group, Escrow

1281 N. Warson

St. Louis, Missouri 63132

[DATE]

Re: Escrow Account No. [\*\*\*\*\*\*\*\*\*\*\*\*\*\*]

Dear Escrow Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Reference is made to that certain Escrow Agreement dated as of July 21, 2025 (the "<u>Escrow Agreement</u>") by and among Damon Inc., a British Columbia corporation (the "<u>Company</u>"), DealMaker Securities LLC, a Delaware limited liability company (the "<u>Managing Broker-Dealer</u>") and ENTERPRISE BANK & TRUST (in its capacity as escrow holder, the "<u>Escrow Agent</u>"). All terms used but not defined herein shall have the respective meanings given such terms in the Escrow Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Investor has terminated Investor's Subscription or the Company has rejected Investor's Subscription, in whole or in part, prior to the disbursement of offering proceeds pursuant to Section 2.1(d) of the Escrow Agreement and, if applicable, in compliance with Regulation CF, 17 C.F.R. 227.304.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. You are hereby directed to disburse the Escrow Funds to the Investor as follows:

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the undersigned has executed this statement as of the date first hereinabove set forth.

---

| | | |
|:---|:---|:---|
|  | **Company:** | **Company:** |
|  | Damon Inc. | Damon Inc. |
|  | a British Columbia corporation | a British Columbia corporation |
|  | By: | |
|  | Name: | Baljinder Bhullar |
|  | Its: | CFO |
|  | **Managing Broker-Dealer:** | **Managing Broker-Dealer:** |
|  | DealMaker Securities, LLC | DealMaker Securities, LLC |
|  | a Delaware limited liability company | a Delaware limited liability company |
|  | EIN: 86-3978437 | EIN: 86-3978437 |
|  | By: | |
|  | Name: | Jonathan Self |
|  | Its: | CCO |
| ACKNOWLEDGED by: |  |  |
|  | **Escrow Agent:** | **Escrow Agent:** |
|  | Enterprise Bank & Trust | Enterprise Bank & Trust |
|  | By: |  |
|  | Name: | Ernesto Maldonado |
|  | Its: | SVP, Specialty Escrow Officer |

---

**EXHIBIT D**

**ESCROW AGENT SCHEDULE OF FEES**

---

| | |
|:---|:---|
| Escrow Account Servicing Fee (Annually): | $1000.00 |
| Tax Reporting: | $10.00/per 1099 filing |
| Outgoing Domestic Wire | $25.00 per wire |
| Incoming Domestic Wire | $12.50 per wire |
| International Wire | $45.00 per wire |
| Escrow Repaper | $500.00 |
| Additional Disbursements | $100.00 per disbursement |
| Demand Statements | $6.00 per statement |

---

\* Escrow fees due upon account opening. Disbursement fees may apply

NOTE: All other standard bank fees apply. Please see current fee schedule for a summary of all bank fees.

**The Escrow Account Servicing Fee, if not paid at the time of final disbursement of the funds, may debited by Escrow Agent from the balance remaining in the Escrow Account upon final disbursement of the funds to the Company in accordance with the Agreement.** 

**SCHEDULE I**

**ESCROW ACCOUNT SIGNING AUTHORITY**

**Authorized Representative(s) of Company**

The undersigned certifies that each of the individuals listed below is an authorized representative of the Company with respect to any instruction or other action to be taken in connection with the Escrow Agreement and Enterprise Bank & Trust shall be entitled to rely on such list until a new list is furnished to Enterprise Bank & Trust.

---

| | |
|:---|:---|
| Signature: | Signature: |
| Print Name: | Print Name: |
| Title: | Title: |
| Phone: | Phone: |
| Email: | Email: |

---

The undersigned further certifies that he or she is duly authorized to sign this Escrow Account Signing Authority.

---

| | | |
|:---|:---|:---|
| Signature: | | \*\* |
| Name: | [_________] |  |
| Its: | [_________] |  |
| Date: | [_________] |  |

---

\*\* To be signed by corporate secretary/assistant secretary. When the secretary is among those authorized above, the president must sign in the additional signature space provided below. For entities other than corporations, an authorized signatory not signing above should sign this Escrow Account Signing Authority.

(Additional signature, if required)`

---

| |
|:---|
| Signature: |
| Name: |
| Its: |
| Date: |

---

If Company is using an Intermediary, (as defined by Regulation CF, 17 C.F.R. Part 227), the following shall be authorized representatives of the Intermediary:

---

| | |
|:---|:---|
| Signature: | Signature: |
| Print Name: | Print Name: |
| Title: | Title: |
| Phone: | Phone: |
| Email: | Email: |

---

## Ex1A-11

**Exhibit 11.1**

**INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM'S CONSENT**

We consent to the incorporation by reference in this Offering Statement of Damon Inc. on Form 1-A of our report of Grafiti Holding Inc. dated September 26, 2024, with respect to our audits of the consolidated financial statements of Grafiti Holding Inc. as of June 30, 2024, 2023 and 2022 and for the years then ended, appearing in the Annual Report on Form 10-12B/A of Grafiti Holding Inc. We also consent to the reference to us under the heading "Experts" in such Offering Statement.

/s/ Marcum llp

New York, NY

July 21, 2025

## Ex1A-11

**Exhibit 11.2**

**INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM'S CONSENT**

We consent to the incorporation by reference in this Offering Statement of Damon Inc. on Form 1-A of our report of Damon Motors Inc. dated September 26, 2024, with respect to our audit of the consolidated financial statements of Damon Motors Inc. as of June 30, 2024 and for the year then ended, appearing in the Annual Report on Form 10-12B/A of Grafiti Holding Inc. We also consent to the reference to us under the heading "Experts" in such Offering Statement.

/s/ Marcum llp

New York, NY

July 21, 2025

## Ex1A-11

**Exhibit 11.3**

<u>Consent of Independent Registered Public Accounting Firm</u>

We hereby consent to the incorporation by reference in this Offering Statement on Form 1-A of our report dated December 28, 2023, relating to the consolidated financial statements of Damon Motors Inc. (the Company) for the year ended June 30, 2023 and for the two years then ended. Our report contains an explanatory paragraph regarding the Company's ability to continue as a going concern.

We also consent to the reference to us under the caption "Experts" in the Offering Statement.

*/s/ BDO Canada LLP*

BDO Canada LLP

Vancouver, British Columbia

July 22, 2025

## Ex1A-12

**Exhibit 12.1**

![](ex12-1_001.jpg)

**Our File No.** 1022049-318311

July 22, 2025

**Damon Inc.**

4601 Canada Way, Suite #402

Burnaby, British Columbia

Canada, V5G 4X7

Attn: Board of Directors

Dear Sirs:

Re: Damon Inc.

We have acted as Canadian counsel to Damon Inc., a British Columbia corporation (the "**Company**"), in connection with the Company's filing of an offering statement on Form 1-A filed on the date hereof (the "**Offering Statement**") with the Securities and Exchange Commission (the "**SEC**") pursuant to Regulation A under the United States Securities Act of 1933, as amended (the "**Act**"). The Offering Statement contemplates the offering (the "**Offering**") of up to 300,000,000 common shares (the "**Common Shares**") of the Company to raise an aggregate total of US$30,000,000 at a subscription price of US$0.10 per Common Share.

**Documents Reviewed**

In rendering the opinions set forth below, we have reviewed the following documents in addition to those documents referred to above:

● the Company's Notice of Articles;

● the Company's Articles (together with the Notice of Articles, the "**Constating Documents** ");

● certain records of the Company's corporate proceedings as reflected in its minute books, including resolutions of the directors approving, among other things, the Offering and the form of subscription agreement to be entered into between the Company and purchasers of the Common Shares; and

● other documents as we have deemed relevant.

In addition, we have relied upon a certificate (the "**Officers' Certificate**") of certain officers of the Company dated as of even date herewith as to certain questions of fact material to our opinions. For purposes of this opinion, we have not reviewed any documents other than the documents listed above. In particular, we have not reviewed, and express no opinion on, any document that is referred to or incorporated by reference into the documents reviewed by us.

McMillan LLP \| Royal Centre, 1055 W. Georgia St., Suite 1500, PO Box 11117, Vancouver, BC, Canada V6E 4N7 \| t 604.689.9111 \| f 604.685.7084

Lawyers \| Patent & Trade-mark Agents \| Avocats \| Agents de brevets et de marques de commerce

Vancouver \| Calgary ½ Toronto \| Ottawa \| Montréal \| mcmillan.ca

---

| | |
|:---|:---|
| ![](ex12-1_001.jpg) | July 22, 2025<br> Page 2 |

---

**Assumptions, Limitations and Qualifications**

Our opinions expressed herein are subject in all respects to the following assumptions, limitations and qualifications:

● the Common Shares will be offered, issued and sold in compliance with applicable United States federal and state securities laws, and in the manner stated in the Offering Statement;

● the Constating Documents of the Company in the forms reviewed by us are in full force and effect, and have not been amended, restated, supplemented or otherwise altered, and there has been no authorization of any such amendment or other alteration, in each case since the date hereof;

● the minute books of the Company reflect all corporate proceedings of the Company, are accurate and up-to-date, and correctly reflect the directors and officers of the Company;

● we have assumed (i) the legal capacity of all natural persons, (ii) the genuineness of all signatures on documents examined by us, (iii) the authenticity of all documents submitted to us as originals, (iv) the conformity to authentic originals of all documents submitted to us as certified, conformed, photostatic or other copies, and (v) that the documents, in the forms submitted to us for review, have not been and will not be altered or amended in any respect; and

● we have assumed that each of the statements made and certified in the Officers' Certificate was true and correct when made, has at no time since being made and certified become untrue or incorrect, and remains true and correct on the date hereof.

The opinions expressed in this letter are rendered as of the date hereof and are based on our understandings and assumptions as to present facts, and on the application of applicable law as the same exists on the date hereof. We assume no obligation to update or supplement this opinion letter after the date hereof with respect to any facts or circumstances that may hereafter come to our attention or to reflect any changes in the facts or law that may hereafter occur or take effect.

Our opinion is limited to law of the Province of British Columbia and the federal laws of Canada applicable therein, including all applicable provisions of the *Business Corporations Act* (British Columbia). We have not considered, and have not expressed any opinion with regard to, or as to the effect of, any other law, rule, or regulation, state or federal, applicable to the Company. In particular, we express no opinion as to United States federal securities laws.

---

| | |
|:---|:---|
| ![](ex12-1_001.jpg) | July 22, 2025<br> Page 3 |

---

**Opinion**

Based upon and subject to the foregoing, we are of the opinion that the Common Shares have been duly authorized by all necessary corporate action on the part of the Company and, when the Common Shares are issued and sold in the manner and under the terms described in the Offering Statement, will be validly issued, fully paid and non-assessable.

**Consent**

We hereby consent to the filing of this opinion with the SEC as an exhibit to the Offering Statement. In giving this consent, we do not thereby admit that we are within the category of persons whose consent is required under Section 7 of the Act or the rules and regulations of the SEC promulgated thereunder.

This opinion letter is furnished to you at your request in accordance with the requirements of Item 17(12) of Form 1-A in connection with the filing of the Offering Statement, and is not to be used, circulated, quoted or otherwise relied upon for any other purpose. No opinion is expressed as to the contents of the Offering Statement, other than the opinion expressly set forth herein relating to the Common Shares. This opinion is expressed as of the date hereof unless otherwise expressly stated, and we disclaim any undertaking to advise you of any subsequent changes in the facts stated or assumed herein or of any subsequent changes in applicable laws.

Yours truly,

 

*/s/ McMillan LLP*

## Ex1A-14

**Exhibit 14.1**

**UNITED STATES<br> SECURITIES AND EXCHANGE COMMISSION<br> Washington, D.C. 20549**

**FORM F-X**

**APPOINTMENT OF AGENT FOR SERVICE OF PROCESS<br> AND UNDERTAKING**

A. Name of issuer or person filing ("Filer"):  **<u>Damon Inc.</u>** 

B. (1) This is [check one]:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;☒ an
original filing for the Filer.

☐ an amended filing for the Filer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Check
 the following box if you are filing the Form F-X in paper in accordance with Regulation S-T
 Rule 101(b)(9) ☐

C. Identify the filing in conjunction with which this Form is being
filed:

---

| | |
|:---|:---|
| Name of registrant: | **<u>Damon Inc.</u>** |
| Form type: | **<u>Form 1-A</u>** |
| File Number (if known): | _____________________ |
| Filed by: | **<u>Damon Inc.</u>** |
| Date Filed (if filed concurrently, so indicate): | **<u>July 22, 2025</u> (concurrent herewith)** |

---

D. The Filer is incorporated or organized under the laws of  **<u>British Columbia, Canada</u>** and has
its principal place of business at:

**DAMON INC.<br> 4601 Canada Way, Suite #402<br> Burnaby, British Columbia V5G 4X7<br> Tel: (236) 326-3619**

E. The Filer designates and appoints CT Corporation System ("Agent"), located at 28 Liberty Street,
New York, New York 10005; telephone (212) 894-8940 as the agent (the "Agent") of the Filer upon whom may be served any process,
pleadings, subpoenas, or other papers in:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any investigation or administrative proceeding conducted by the Commission; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any civil suit or action brought against the Filer or to which the Filer has been joined as defendant
or respondent, in any appropriate court in any place subject to the jurisdiction of any State or of the United States or of any of its
territories or possessions or of the District of Columbia, where the investigation, proceeding or cause of action arises out of or relates
to or concerns (i) any offering made or purported to be made in connection with the securities registered or qualified by the Filer on
Form 1-A on the date hereof or any purchases or sales of any security in connection therewith; (ii) the securities in relation to which
the obligation to file an annual report on Form 40-F arises, or any purchases or sales of such securities; (iii) any tender offer for
the securities of a Canadian issuer with respect to which filings are made by the Filer with the Commission on Schedule 13E-4F, 14D-1F
or 14D-9F; or (iv) the securities in relation to which the Filer acts as a Trustee pursuant to an exemption under Rule 10a-5 under the
Trust Indenture Act of 1939. The Filer stipulates and agrees that any such civil suit or action or administrative proceeding may be commenced
by the service of process upon, and that the service of an administrative subpoena shall be effected by service upon such Agent for service
of process, and that service as aforesaid shall be taken and held in all courts and administrative tribunals to be valid and binding as
if personal service thereof had been made.

F. The Filer stipulates and agrees to appoint a successor agent for service of process and file an amended
Form F-X if the Filer discharges the Agent or the Agent is unwilling or unable to accept service on behalf of the Filer at any time until
six years have elapsed from the date of the last sale of securities in reliance upon the Regulation A exemption.

The Filer further undertakes to advise the Commission promptly of any change to the Agent's name or address during the applicable period by amendment of this Form, referencing the file number of the relevant form in conjunction with which the amendment is being filed.

G. The Filer undertakes to make available, in person or by telephone, representatives to respond to inquiries
made by the Commission staff, and to furnish promptly, when requested to do so by the Commission staff, information relating to: the Form
1-A; the securities to which the Form 1-A relates; and the transactions in such securities.

The Filer certifies that it has duly caused this power of attorney, consent, stipulation and agreement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Vancouver, Province of British Columbia, Country of Canada this __22<sup>nd</sup> day of July, 2025.

---

| | |
|:---|:---|
| **DAMON INC.** | **DAMON INC.** |
| By: | */s/Baljinder Bhullar* |
| Name: | Baljinder Bhullar |
| Title: | Chief Financial Officer |

---

This statement has been signed by the following persons in the capacities and on the date indicated.

---

| | |
|:---|:---|
| **DAMON INC.** | **DAMON INC.** |
| By: | */s/Dominique Kwong* |
| Name: | Dominique Kwong |
| Title: | Chief Executive Officer |
| Date: | July 22, 2025 |
| **CT CORPORATION SYSTEM** | **CT CORPORATION SYSTEM** |
| as Agent for Service of Process for Damon Inc. | as Agent for Service of Process for Damon Inc. |
| By: | /s/David Westcott |
| Name: | David Westcott |
| Title: | Assistant Secretary |

---

### UNITED STATES SECURITIES AND EXCHANGE COMMISSION
**Washington, D.C. 20549**

## FORM 1-A

### REGULATION A OFFERING STATEMENT
### UNDER THE SECURITIES ACT OF 1933

### Item 1. Issuer Information

**Exact name of issuer:** Damon Inc.

**Jurisdiction of Incorporation/Organization:** A1

**Year of Incorporation:** 2023

**CIK:** 0002000640

**I.R.S. Employer Identification Number:** 00-0000000

**Primary Standard Industrial Classification Code:** 3751

**Total number of full-time employees:** 13

**Total number of part-time employees:** 0

**Address of Principal Executive Offices:** 4601 Canada Way, Suite #402, Burnaby, A1 V5G 4X7

**Company Phone:** 236-326-3619

**Person to contact:** Michael Shannon

### Financial Statements

**Balance Sheet Information**

| Metric                                   | Amount        |
|:---|:---|
| Cash and Cash Equivalents                | $7555820.00   |
| Investment Securities                    | $0.00         |
| Accounts and Notes Receivable            | $39132.00     |
| Property, Plant and Equipment (PP&E)     | $281419.00    |
| Total Assets                             | $8663925.00   |
| Accounts Payable and Accrued Liabilities | $6882472.00   |
| Long-Term Debt                           | $0.00         |
| Total Liabilities                        | $29171382.00  |
| Total Stockholders' Equity               | $-21291457.00 |
| Total Liabilities and Equity             | $8663925.00   |

**Statement of Comprehensive Income Information**

| Metric                                    | Amount       |
|:---|:---|
| Total Revenues                            | $130934.00   |
| Costs and Expenses Applicable to Revenues | $61493.00    |
| Depreciation and Amortization             | $175902.00   |
| Net Income                                | $-2354505.00 |
| Earnings Per Share - Basic                | -0.11        |
| Earnings Per Share - Diluted              | -0.11        |

**Auditor Information**

| Metric          | Amount         |
|:---|:---|
| Name of Auditor | CBiz CPAs P.C. |

### Outstanding Securities

| Class            |   Outstanding |     CUSIP | Publicly Traded    |
|:---|---:|---:|:---|
| Common Equity    |      19603815 | 235750205 | OTCID Basic Market |
| Preferred Equity |             0 | 000000000 | N/A                |
| Debt Securities  |             0 | 000000000 | N/A                |

### Item 2. Issuer Eligibility
- [x] The issuer certifies that all of the statements in this part are true.

### Item 3. Application of Rule 262
- [x] The issuer certifies that it is not disqualified and has not been involved in any disqualifying event.

### Item 4. Summary Information Regarding the Offering

**Tier:** Tier2

**Financial Statement Status:** Audited

**Type of Securities Offered:** Equity (common or preferred stock)

**Is this a delayed or continuous offering?** No

**Was or is the offering to take place within one year after qualification?** No

**Was or is the offering to commence within two days after qualification?** No

**Is this a best efforts offering?** Yes

**Was there any solicitation of interest?** No

**Are there any resale securities by affiliates of the issuer?** No

**Offering Amounts**

| Description                                                     | Amount       |
|:---|:---|
| Number of securities offered                                    | 300000000    |
| Number of securities outstanding                                | 19603815     |
| Price per security                                              | $0.10        |
| Issuer's aggregate offering price                               | $30000000.00 |
| Aggregate offering price of securities held by security holders | $0.00        |
| Aggregate price of securities offered concurrently              | $0.00        |
| Total aggregate offering price                                  | $30000000.00 |

**Anticipated Fees**

| Service Provider   | Name           | Fees       |
|:---|:---|:---|
| Auditor            | CBiz CPAs P.C. | $20000.00  |
| Legal              | McMillan LLP   | $150000.00 |
| Promoters          |  |  |

**Estimated Net Proceeds to the Issuer:** $27900000.00

### Item 5. Jurisdictions in Which Securities are to be Offered

- All States and Territories

### Item 6. Unregistered Securities Issued or Sold Within One Year

**Name of Such Issuer:** Damon Inc.

**Title of Securities Issued:** Common Shares

**Total Amount of Securities Issued:** 144673

**Amount of such securities sold by principal security holders:** 0

**Aggregate consideration:** $84,074,954.95 of Common Shares

**Basis for aggregate consideration:** —

**Securities Act Exemption:** Section 4(a)(2) & Section 3(a)(10) for the issuance of an aggregate of 144,673 Common Shares; Section 3(a)(10) for the issuance of 17,492 Warrants & 15,537 Stock Options; & Section 4(a)(2) for the issuance of the Convertible Notes & Pre-Paid Purchases.