Damon Inc. solidifies indemnification agreements

Damon Inc. (NASDAQ:DMN), a micro-cap computer programming services company currently valued at $17.86 million, has formalized indemnification agreements with key executives and directors, as disclosed in a recent SEC filing.

The agreements, designed to protect and indemnify the company's leadership against certain liabilities, were put into effect on Monday. The company's stock has experienced significant volatility, currently trading at $0.77, near its 52-week low of $0.76.

As per the filing, Damon Inc. entered into an indemnification agreement with its Chief Financial Officer and director, Bal Bhullar, on December 16, 2024. The company plans to extend similar agreements to its current directors and certain executive officers, including the interim Chief Executive Officer. These agreements are expected to serve as a standard for future company directors and officers.

The indemnification agreements obligate Damon Inc. to indemnify the individuals, within specified limitations, for liabilities they may incur in their official capacities. This move follows the Board's approval and is seen as a step to reinforce the company's governance framework.

Additionally, on December 10, 2024, Damon Inc.'s Board and compensation committee approved new compensation packages for its non-executive directors. The non-executive directors will receive an annual base retainer of $60,000, with additional retainers for those serving as lead director or as chair of a Board committee.

These governance changes come as the company faces challenging market conditions, with InvestingPro data showing a 64% decline in share price over the past six months. Moreover, one-time onboarding fees were approved for directors Karan Sodhi and Shashi Triphathi, amounting to $23,333 and $30,625, respectively.

The details of these indemnification agreements and director compensations are outlined in the exhibits attached to Damon Inc.'s 8-K filing with the SEC. The company's adherence to formalizing such agreements and compensations reflects its commitment to maintaining a robust management structure, providing reassurance to the leadership team as they navigate the company's strategic and operational directives. For deeper insights into Damon Inc.'s financial health and additional analysis, InvestingPro subscribers have access to over 8 additional key insights and real-time financial metrics.

This news is based on Damon Inc.'s recent SEC filing, which provides a transparent view of the company's latest governance actions.

In other recent news, Damon Inc. has been the subject of significant corporate changes and strategic developments. The company recently underwent an executive reshuffle, with Dominique Kwong stepping in as the interim CEO and Shashi Tripathi taking the reins as Chairperson of the Board. This follows the resignation of former President, CEO, and Executive Chairman Damon Jay Giraud, and the conversion of his multiple voting shares into common shares.

Damon Inc. has also made substantial progress in its production roadmap, with over 3,000 refundable reservations for its electric motorcycles potentially generating approximately $100 million in revenue. The company's technology, including 16 issued patents and 22 pending applications, is nearing completion, with production and commercialization slated for 2026.

The company's recent merger with Grafiti Holdings and its subsequent Nasdaq listing have been strategic steps towards securing necessary capital for production. Despite financial challenges, Damon Inc. has managed to sustain operations through cost-cutting measures and investor support. These are the recent developments in Damon Inc.'s journey towards the production of advanced electric motorcycles.

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