Damon Motors Collaboration with NXP Semiconductors to Integrate Performance-Driven Automotive Integrated Circuits Into Its Electric Motorcycles

Damon Motors Inc. ("Damon" or the "Company") today announced a collaboration with NXP® Semiconductors ("NXP"), a leader in automotive processing and renowned provider of vehicle electrical/electronic (E/E) architecture and electrification solutions. Through this collaboration, NXP's state-of-the-art technology has been integrated into Damon's electronic control units (ECU) and other electronic systems. NXP's robust and dependable automotive system solutions have been meticulously designed to elevate performance and ensure adherence to stringent industry standards. NXP's extensive technical expertise, reference designs, and application will help Damon accelerate development cycles and streamline electronic system designs. Damon has designed its motorcycles from the ground-up into a tight-fitting form factor with an aim to enhance safety, connectivity, and the overall experience for riders.

"We're making the promise that the more you ride a Damon motorcycle, the smarter and safer all Damon motorbikes will become," said Jay Giraud, CEO, Damon. "And that promise is being made possible by standardizing on NXP's high-performance automotive components. With NXP, we can securely deploy over-the-air updates and deliver on our promise to make motorcycling safer and safer over time."

"We are thrilled to see our technologies come to life in Damon's innovative electric motorcycles," said Jens Hinrichsen, Executive Vice President and General Manager, Advanced Analog, NXP. "This collaboration is a testament to the power of combining cutting-edge technology with visionary electric vehicle design, while underscoring Damon's unwavering commitment to innovation, rider safety, and sustainable transportation."

Key benefits from the Damon/NXP collaboration include:

• Robust and Reliable Automotive ICs: Incorporation of NXP's automotive-grade components, including NXP's automotive processing S32K3 family, i.MX 8X applications processor, MC33771 battery cell controller, MC33664 isolated network high-speed transceiver, FS26 ASIL D safety system basis chip, SJA1110 automotive Ethernet switch, TJA1101 Ethernet PHY and CAN transceivers, to enhance the quality and reliability of Damon's motorcycle electronics, especially in harsh automotive environments. NXP's ICs offer scalable solutions for high-performance and functional safety, complying with ISO 26262 up to ASIL D.
• Advanced Embedded Security Solutions: Integration of NXP's leading embedded security technologies in Damon's motorcycles for outstanding cybersecurity. NXP's latest automotive processors, developed in accordance to ISO/SAE 21434, meet the latest security requirements through their HSE security engine that enables secure real-time processing, firmware updates, and cloud connectivity.
• System Solutions and Expertise: Access to NXP's extensive technical expertise, reference designs, and application support, to accelerate development cycles and streamline electronic system design. NXPs' EV Traction Inverter and High-Voltage Battery Management System solutions include safety documentation and system performance proof points.
• Global Reach and Ecosystem: Collaboration opens doors to NXP's wide ecosystem of developers and manufacturers.

Damon Motors and NXP Semiconductors are teaming up at CES 2024 to showcase the critically-acclaimed Damon HyperFighter motorcycle. The electric streetfighter will be on display in the NXP booth CP-19 at the Las Vegas Convention Center Central Plaza to give attendees a close up look at the groundbreaking technology and features that have set a new standard in the electric motorcycle industry.

For more information, visit damon.com.

About Damon Motors

Damon Motors is a global technology leader disrupting urban mobility, led by entrepreneurs and executives from world class automotive and technology companies. With its offices in San Rafael, California and headquartered in Vancouver, Canada, Damon is on a mission to cause a paradigm shift for safer, smarter motorcycling. The Company is delivering on its promise with award-winning innovation and groundbreaking technologies. Anchored by its proprietary electric powertrain, HyperDrive, Damon has captured the attention of the motorcycling world by delivering top speeds of 200 mph, innovative design, and new features, including CoPilot and Shift, that are attracting an entirely new generation of riders. With strong consumer interest in the US and abroad, Damon aims to set a new standard for motorcycle safety and sustainability worldwide. For more information on how Damon technology is defining the new industry standard, please visit damon.com and follow the Company on LinkedIn, Instagram, Facebook and Twitter.

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"), which reflect Damon's current expectations and projections 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 completion of the merger in partnership with Inpixon, the proposed listing on the NASDAQ for the shares of the combined company following the merger, the global reservations amount for the pre-production of Damon motorcycles and the expected performance level 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 the general market conditions.

Many risks, uncertainties, and other factors could cause the actual results of the 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:

• the risk that the proposed merger may not be completed in a timely manner or at all;
• the occurrence of any event, change or other circumstance that could give rise to the termination of the proposed merger;
• the inability to satisfy the initial listing criteria of NASDAQ or obtain NASDAQ approval of the initial listing of the combined company following the merger;
• the risk that Damon's $85 million of non-binding reservations are canceled, modified, delayed or not placed and that Damon must return the refundable deposits and such reservations are not converted into sales;
• the risks relating to Damon's ability to satisfy the conditions and deliver on the orders and reservations, its ability to maintain quality control of its motorcycles, and Damon's dependence on third parties for supplying components and manufacturing the motorcycles;
• the risk that other motorcycle manufacturers develop competitive electric motorcycles or other competitive motorcycles that adversely affect Damon's market position;
• the risk that Damon's patent applications may not be approved or may take longer than expected, and Damon may incur substantial costs in enforcing and protecting its intellectual property;
• 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 adverse effects of current military conflict between Russia and Ukraine or the Israeli-Hamas War, which continues to affect economic and global financial markets and exacerbate ongoing economic challenges;
• any unfavorable fluctuations and volatility in the availability or price of raw materials included in components used to manufacture Damon's products;
• the reliance on key management and any inability to attract and/or retain key personnel; and
• any inability to raise additional funds to meet its capital requirements and pursue its growth strategy when and in the amounts needed.

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.