Damon Inc. 8-K

What Happened
Damon Inc. announced on December 29, 2025 that it entered into a Promissory Note with Baljinder Bhullar (its CFO and a director) and Dino Mariutti, under which the two creditors agreed to lend the company $300,000 in aggregate ($150,000 each). The note bears interest at 15% per annum, is secured by a General Security Agreement over substantially all present and after‑acquired personal property, and was approved by the company’s audit committee. The proceeds are intended for general corporate purposes.

Key Details

• Principal: $300,000 total ($150,000 from each creditor).
• Interest & term: 15% per annum; matures on the earlier of (i) 60 days after advance or (ii) five business days after completion of an IP loan financing or other debt/equity financing.
• Fees & payment priority: $30,000 aggregate setup fee payable at maturity or prepayment (increasing to $50,000 if unpaid within five business days after maturity). No payments are due under the note until all obligations to Streeterville Capital, LLC are paid in full.
• Security & subordination: Note obligations are subordinated to Streeterville; the security interest granted to these creditors is also subordinated. Parties will enter an intercreditor and subordination agreement acceptable to Streeterville.

Why It Matters
This is a short‑term, insider-backed bridge financing that provides immediate liquidity for general corporate needs. However, repayment and any fee payments are contingent on first satisfying obligations to Streeterville Capital, meaning these lenders are behind Streeterville in priority. The 15% interest rate, setup fees, and short maturity indicate a costly, temporary funding source. Investors should note the insider involvement (CFO as creditor) and that the company granted a security interest in substantially all personal property—though that security is subordinated to Streeterville—affecting the company’s capital structure and creditor priorities.