SAN
RAFAEL, Calif., Nov. 20,
2024 /PRNewswire/ - Damon
Inc., (Nasdaq: DMN) ("Damon"), maker
of high-tech, high performance motorcycles that are safer, smarter,
and cleaner and deliver up to 200 hp, 200 mph, and 200 miles of
range, today announced it is poised to capitalize on
California's newly introduced
Zero-Emission Motorcycle (ZEM) mandates, creating new revenue
stream opportunities that Damon believes will solidify its position
as a trailblazer in the motorcycle industry.
Following the success of California's Zero Emission Vehicle (ZEV)
program, which has allowed automotive manufacturers like Tesla to
earn carbon credits by producing zero-emission vehicles, the
state's zero emission mandates are now being expanded to the
motorcycle industry with the ZEM program. The ZEM program aims to
accelerate the transition to clean energy motorcycles by
incentivizing manufacturers to exceed emission standards and
rewarding those that lead the charge in sustainable
innovation.
A New Revenue Stream for Motorcycle
Manufacturers
Under the ZEV program, automakers that
surpassed emission requirements were able to generate surplus
credits, which they could then sell to companies struggling to meet
the standards. According to Bloomberg, this allowed early EV
adopters like Tesla to generate over $9Bn in revenue from the sale of these credits.
Similarly, the ZEM mandates will allow companies like Damon, which
produces cutting-edge electric motorcycles, to earn ZEM credits for
exceeding regulatory emissions standards. These credits can be sold
to other manufacturers, providing Damon with a new revenue stream
opportunity while reinforcing the company's commitment to
sustainability.
"Damon has always been at the forefront of EV and
motorcycle innovation," said Jay
Giraud, CEO of Damon. "With California's new ZEM mandates, we're excited
to see the government take a proactive approach in accelerating the
adoption of zero-emission motorcycles. The ability to generate and
sell ZEM credits will further enhance our growth potential as we
work towards our next pre-production milestone.
Supporting California's Climate Goals
The ZEM program is designed to support California's ambitious climate goals by
encouraging the widespread adoption of electric motorcycles. With
the transportation sector being one of the largest sources of
greenhouse gas emissions in the state, reducing emissions from
motorcycles is a key component of the state's efforts to achieve
carbon neutrality by 2045. As cars become cleaner, combustion
motorcycles begin to contribute a larger percentage of the
greenhouse gasses in the state.
The ZEM mandates provide a financial incentive for
manufacturers to invest in clean technology and develop motorcycles
that not only meet but exceed the required emissions standards. For
companies like Damon, this is a powerful motivator to continue
pushing the envelope on EV motorcycle technology, ultimately making
zero-emission options more accessible, affordable, and attractive
to consumers.
Virtually Pure Profit
Potential
The ZEM credits, similar to Tesla's experience with ZEV
credits, represent a near pure-profit opportunity for Damon. As
Damon already exceeds emissions standards with its lineup of
high-performance electric motorcycles, the incremental cost of
earning these credits is minimal, making the sales of these credits
a highly profitable revenue opportunity. With
California's expanding focus on
clean energy and electric transportation, the financial benefits of
the ZEM program are expected to grow significantly in the coming
years.
A Vision for the Future of
Motorcycling
Damon is committed to shaping the future of motorcycling
by creating the most advanced electric motorcycles on the market
today. With the addition of ZEM credits to its revenue model, Damon
is well-positioned to accelerate its growth and expand
its presence in the rapidly evolving EV
landscape.
"The ZEM mandates are a win for everyone—consumers,
manufacturers, and the planet," said Giraud. "By incentivizing
companies like Damon to innovate and produce more zero-emission
motorcycles, California is
fostering an environment where electric mobility can thrive, and
where sustainability is not only achievable, but
profitable."
About Damon
Damon is on a mission to cause a paradigm shift for safer,
smarter motorcycling. With its development offices in San Rafael, California, Damon is led by
entrepreneurs and executives from world-class EV and technology
companies. Anchored by the groundbreaking HyperDrive™
electric powertrain, all Damon motorcycles are set to deliver power
and range that exceeds that of gas without the noise, emissions, or
maintenance hassles. Damon has captured the attention of the
motorcycling world cutting edge designs and innovative safety
technologies including CoPilot™ and Shift™, which are attracting a
new generation of motorcycle riders. With strong consumer interest
in the US and abroad, Damon aims to set the standard for motorcycle
safety and sustainability worldwide. For more information , please
visit damon.com.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking information or
forward-looking statements under applicable Canadian and U.S.
securities laws (collectively, "forward-looking statements") that
reflect current expectations and projections of Damon Inc.
("Damon") about its future development. When used in this press
release, forward-looking statements can be identified by the use of
words such as "may," or by such words as "will," "intend,"
"believe," "estimate," "consider," "expect," "anticipate," and
"objective" and similar expressions or variations of such words.
Forward-looking statements are, by their nature, not guarantees of
Damon's future operational or financial performance and are subject
to risks and uncertainties and other factors that could cause
Damon's actual results, performance, prospects, or opportunities to
differ materially from those expressed in, or implied by, these
forward-looking statements. No representation or warranty is
intended with respect to anticipated future results, or that
estimates, or projections will be sustained.
Forward-looking statements in this press release include,
but are not limited to, statements relating to the expected
performance level of Damon motorcycles, the estimated demand of
Damon motorcycles, and the potential safety ratings of Damon
motorcycles.
In developing the forward-looking statements in this press
release, we have applied several material assumptions, including
the general business and economic conditions of the industries and
countries in which Damon operates, and general market
conditions.
Many risks, uncertainties, and other factors could cause
the actual results of Damon to differ materially from the results,
performance, achievements, or developments expressed or implied by
such forward-looking statements. These risks, uncertainties, and
other factors include, but are not limited to, the
following:
- Damon's ability to earn significant revenue from the sale of
surplus credits under California's
ZEM program or otherwise realize financial benefits from the
program;
- the risk that the price of common shares of Damon may be
volatile due to a variety of factors, including changes in the
highly competitive industries in which Damon operates, variations
in performance across competitors, changes in laws, regulations,
technologies that may impose additional costs and compliance
burdens on Damon's operations, global supply chain disruptions and
shortages, and macro-economic and social environments affecting
Damon's businesses;
- the inability to implement Damon's business plans, forecasts,
and other expectations, or identify and realize additional
opportunities;
- the risk that Damon has not achieved sufficient sales and
production capacity at a mass-production facility, and Damon and
its current and future collaborators may be unable to successfully
develop and market Damon's motorcycles or solutions, or may
experience significant delays in doing so;
- the risk that Damon may never achieve or sustain
profitability;
- the risk that Damon may be unable to raise additional capital
on acceptable terms to finance its operations and remain a going
concern;
- the risk that Damon experiences difficulties in managing its
growth and expanding operations;
- any adverse changes in U.S. or Canadian general economic,
business, market, financial, political or legal conditions,
including as a consequence of the ongoing uncertainties relating to
inflation and interest rates;
- any inability to successfully and economically manufacture and
distribute Damon's motorcycles at scale;
- the reliance on key management, including Damon's Chief
Executive Officer, Jay Giraud, and
any inability to attract and/or retain key personnel;
- any inability to raise additional funds to meet its capital
requirements and pursue its growth strategy when and in the amounts
needed; and
- any inability to secure adequate insurance coverage or a
potential increase in insurance costs.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of the
press release or as of the date otherwise specifically indicated
herein. Due to risks and uncertainties, events may differ
materially from current expectations. Damon disclaims any intention
or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events, or
otherwise, except as required pursuant to applicable securities
law. All forward-looking statements contained in the press
release are expressly qualified in their entirety by this
cautionary statement.
Additional information about Damon Inc., and the foregoing
risks and uncertainties, can be found in our filings with the U.S.
Securities and Exchange Commission, including our Form 10 and Form
S-1 registration statements and subsequent filings,
at www.sec.gov, and our filings with
the British Columbia Securities Commission, including our
non-offering prospectus filed following our completed business
combination with Damon Motors Inc. and subsequent filings,
at www.sedarplus.ca.
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SOURCE DAMON Motors Inc.