SKYX Platforms Q1 2025 Earnings Report

SKYX Platforms EPS Results

• Actual EPS: -$0.09
• Consensus EPS: -$0.10
• Beat/Miss: Beat by +$0.01
• One Year Ago EPS: N/A

SKYX Platforms Revenue Results

• Actual Revenue: $20.10 million
• Expected Revenue: $20.25 million
• Beat/Miss: Missed by -$150.00 thousand
• YoY Revenue Growth: N/A

SKYX Platforms Announcement Details

• Quarter: Q1 2025
• Date: 5/14/2025
• Time: Before Market Opens
• Conference Call Date: Wednesday, May 14, 2025
• Conference Call Time: 4:30PM ET

SKYX Platforms (NASDAQ:SKYX) provides a series of safe-smart platform technologies. The company's first and second-generation technologies enable light fixtures, ceiling fans, and other electrically wired products to be installed and plugged into a ceiling's electrical outlet box. It also provides universal power-plugs and receptacle products. In addition, it offers smart products, such as SkyHome App; sky smart universal power-plug and receptacle; sky-smart plug and play ceiling fans and lightings; and all-in-one smart sky platform. The company was formerly known as SQL Technologies Corp. and changed its name to SKYX Platforms Corp. in June 2022. SKYX Platforms Corp. was incorporated in 2004 and is based in Pompano Beach, Florida.

SKYX Platforms Q1 2025 Earnings Call Transcript

Key Takeaways

• SkyEx reported Q1 2025 sales of $20.1 million, up from $18.9 million a year ago, marking its fifth consecutive quarter of year-over-year revenue growth and targeting 30,000 homes with its smart plug-and-play products by the end of Q2 2025.
• The company aims to be cash flow positive in the second half of 2025, driven by significant new projects and orders, while cutting G&A expenses by 17% year-over-year and improving gross margin by 4.82% sequentially.
• SkyEx strengthened its balance sheet by raising $4 million in additional equity (part of a $15 million financing round led by the Shaner Group) and ended Q1 2025 with $12.3 million in cash and equivalents.
• To mitigate tariff risks and build a resilient supply chain, SkyEx partnered with Profab Electronics in Florida on automated U.S. manufacturing, complementing its existing facilities in Vietnam, Taiwan, China, and Cambodia.
• The company is advancing its push for mandatory safety standardization of its electrical ceiling outlet technology, adding former National Electrical Code and American Lighting Association leaders to accelerate government adoption.

Presentation

[Operator]

Before we begin, please note that today's call may contain forward looking statements based on current expectations and assumptions.

[Operator]

These are subject to risks and uncertainties, and actual results may differ materially. For a more complete discussion, please refer to our Form 10 Q for the quarter ending March thirty first of twenty twenty five filed with the SEC. Please note this event is being recorded. I would now like to turn the conference over to SkyEx's Founder and Executive Chairman, Mr. Ronnie Cohen.

[Operator]

Please go ahead, sir.

[Rani Kohen, Founder & Executive Chairman at SKYX Platforms]

Thank you. Good afternoon, everyone. Happy to be here again as we continue to progress with our business goals. We will have, and I'll pass it to our President, Steve Schmidt, to start our conference.

[Steven Schmidt, President at SKYX Platforms]

Hey, Ronnie, thank you very much. As I think about the comments I'm about ready to make, I think several things stand out. First of all, we are making great progress, and we're excited about the momentum that we have in the business right now. And we really see significant activity going on that's going to really move us forward to really become something very, very significant. It's an exciting time at SkyEx, it really is.

[Steven Schmidt, President at SKYX Platforms]

So let's jump into kind of our key highlights that we've got. We recorded first quarter sales in 2025 of $20,100,000 compared to $18,900,000 for the first quarter twenty twenty four. And we continue to grow our market penetration of our advanced and smart platform products in both The U. S. And Canadian markets.

[Steven Schmidt, President at SKYX Platforms]

This is our fifth consecutive quarter of year over year revenue growth, and we hope that, that will continue. We expect our products to be in 30,000 U. S. And Canadian homes by the end of the second quarter of twenty twenty five. We are progressing with significant projects and orders that will enable us to become cash flow positive in the second half of twenty twenty five.

[Steven Schmidt, President at SKYX Platforms]

Our G and A expenses decreased by 17% compared to the first quarter of twenty twenty four, And gross margin and gross profit improved by 4.82% in the first quarter of twenty twenty five, sequentially from the fourth quarter of twenty twenty four. Very important regarding our safety code standardization team is receiving support from a new significant leading individual with our government safety organization process for a safety mandatory standardization of our electrical ceiling outlet and receptacle technology and more to come. As of 03/31/2024, we reported $12,300,000 in cash, cash equivalents and restricted cash as compared to $15,500,000 as of 03/31/2024. We recently secured approximately 4,000,000 in additional equity, mainly through preferred stock investments, representing $2 per share of common stock with no warrants, part of a broader financing round totaling approximately $15,000,000 to date, led by The Shaner Group, owner and developer of more than 70 hotels worldwide. The 15,000,000 broader round included substantial participation from company insiders, including myself and co CEOs Lenny Sakhalow and John Campi, underscoring their continued confidence in Sky's strategic vision and growth trajectory.

[Steven Schmidt, President at SKYX Platforms]

As you can see, we are continuing to raise money from strategic investors that understand the depth of our strategic vision and our significant value proposition for builders, insurance companies and others. As common with companies such as ours, when sales are converted into cash rapidly, often referred to as the Dell Working Capital Model, we leverage our trades payable to finance our operations to enhance our cash position and lower our cost of capital. We strongly believe our products can save insurance companies many billions of dollars annually by reducing fires, ladder falls, electrocutions. We expect once we complete an entire range variation of our Safe Plug and Play products, we will start being recommended by insurance companies. Our technologies provide opportunities for recurring revenues through interchangeability, upgrades, monitoring and subscriptions.

[Steven Schmidt, President at SKYX Platforms]

We are focused on the razor and blade model, and our product range includes our advanced ceiling electrical outlet, the razor, and our advanced smart home plug and play products, the Blade, including our advanced smart home plug and play platform products, lighting, recessed lights, downlights, exit signs, emergency lights, ceiling fans, chandeliers, pendants, holiday kits, you name it, outdoor and indoor lights, among other things. You can think it, we've got it. Our plug and play technology enables an installation of lighting, fans and smart home products in high rise buildings and hotels within days rather than months. Our total addressable market, or TAM, in The U. S.

[Steven Schmidt, President at SKYX Platforms]

Is roughly $500,000,000,000 with over 42,000,000,000 sealing applications in The U. S. Alone. Expected revenue streams from our Retail and Professional segments include product sales, royalties, licensing subscriptions, monitoring and the sale of global country rights. We continue to utilize our e commerce platform of over 60 websites for lighting and home decor to educate, enhance our market penetration to both retail and the professional segments.

[Steven Schmidt, President at SKYX Platforms]

So as I said, great progress, a lot going on and significant more information to come. So with that, let me introduce our Co CEO, Lenny Soccolo, who will walk you through the financials. Lenny, all yours.

[Leonard Sokolow, Co-CEO at SKYX Platforms]

Thank

[Leonard Sokolow, Co-CEO at SKYX Platforms]

you, Steve. Thank you very much. And welcome everyone again. Just if I could run through some select first quarter twenty twenty five financial results. Our revenue in the first quarter of twenty twenty five increased 6% to a 20,100,000.0 in revenues, including e commerce sales as well as smart and standard plug and play products as compared to $18,900,000 in the first quarter of twenty twenty four.

[Leonard Sokolow, Co-CEO at SKYX Platforms]

Our gross profit for the first quarter ending 03/31/2025 increased sequentially to 2% to 5,700,000.0 And as discussed, our gross margin increased 4.8% as compared to the fourth quarter of twenty twenty four. Net cash used in operating activities for the first quarter ending March 31 decreased sequentially by 29% to $4,000,000 compared to $6,100,000 in the fourth quarter of twenty twenty four. For the first quarter of twenty twenty five, adjusted EBITDA loss, which is the loss before interest, taxes, depreciation, and amortization as adjusted for share based payments, which is a non GAAP measure, decreased to $3,600,000 or $04 per share as compared to $4,500,000 or $05 per share in the first quarter of twenty twenty four. We would like to emphasize that we have sufficient cash to achieve our goals, including being cash flow positive in 2025. And as we reported, realized the reduction in the general and administrative expenses by 17% by 1,300,000 to $6,600,000 in the first quarter of twenty twenty five from $7,900,000 in the first quarter of twenty twenty four.

[Leonard Sokolow, Co-CEO at SKYX Platforms]

And again, emphasizing that our gross margin and gross profit for the first quarter increased in both events by 4.82% compared to the quarter ending 12/31/2024. Our net loss per share decreased by 1% to $09 per share in the first quarter compared to $0.10 per share loss in the first quarter of twenty twenty four. And again, as reported, our EBITDA loss decreased to $04 per share in the first quarter compared to $05 per share in the first quarter of twenty twenty four. We continue to grow our market penetration of our advanced and smart plug and play products, and we expect our products to be in 30,000 US and Canadian homes by the end of the second quarter. So our penetration continues.

[Leonard Sokolow, Co-CEO at SKYX Platforms]

We expect our products to be in tens of thousands of additional homes in the second half of twenty twenty five. We also expect to continue to increase our units and grow our revenue to the professional and builder segments. As previously announced, we entered into partnership with Profab Electronics, a premier electronic contract manufacturer based in Pompano Beach, Florida. This collaboration marks a significant step in SkyX's commitment to building a resilient, efficient, and localized supply chain for our innovative product lines. This partnership, if I can emphasize, is in addition to manufacturing collaborations that Skyx has in Vietnam, Taiwan, China, and Cambodia.

[Leonard Sokolow, Co-CEO at SKYX Platforms]

And if I may hand it back to Ronnie, our Founder and Executive Chairman. Thank you very much,

[Rani Kohen, Founder & Executive Chairman at SKYX Platforms]

Lenny and Steve. As you know, we're progressing and as you heard, you were progressing nicely on several fronts. I think that and we hope that in the near, very near future, we can share a few additional items that we're working on and show some more significant or even more significant progress. We intend to launch a few new patented products and we're just getting ready for that production. And once we are, we will be able to share that with the public.

[Rani Kohen, Founder & Executive Chairman at SKYX Platforms]

And we're also working projects. And as Steve mentioned and emphasized that we are doing some tremendous progress with adding leading, significant leading and prominent leaders to our code team led by Mark Early, former head of the National Electrical Code and Eric Jacobson, former president and CEO of American Lighting Association. We have an addition to that team in a very high level that will help our team and it already working with us and our team and ways to expedite our standardization of safety to a mandated position that we all hope and our management team and our leadership, code leadership strongly believe that we met all the conditions and the significant life saving aspects as thousands of people per day in The US fall from ladders, get electrocuted and fires happen on a daily base. And millions of hazardous incidents annually happen that we can probably mitigate, if not prevent completely in many cases. So we are excited in our progress and we hope that we'll be able to share some of those aspects in the next coming months or hopefully sooner.

[Rani Kohen, Founder & Executive Chairman at SKYX Platforms]

I think in general, we're very happy to where we are and as Steve and Lenny both mentioned, we can we believe we can be with our products in 30,000 homes by the end of this quarter and we also expect to have a much more significant growth towards the second half of the year with homes and units that we penetrate with our products. So that's a general overview here that you got from us with some details. We'll be happy to share, to answer any questions you have. So if that's with that being said, I'll transfer it to q and a.

[Operator]

Thank you. We will now begin the question and answer session. To ask a question

[Rani Kohen, Founder & Executive Chairman at SKYX Platforms]

Yes.

[Operator]

You may press star then one on your touch tone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then 2. And at this time, we'll pause momentarily to assemble our roster.

[Rani Kohen, Founder & Executive Chairman at SKYX Platforms]

Yes. And I see here Pat from Noble. So Hey, guys. Your line is open.

[Patrick McCann, Equity Research Analyst at Noble Capital Markets]

Hey, guys. Thanks for taking my questions. Hi, Pat. First of all, I wanted to ask about the manufacturing, The US partnership that you guys recently announced. Given the tenuous tariff situation, what is the current state of manufacturing as far as where that is mostly occurring now?

[Patrick McCann, Equity Research Analyst at Noble Capital Markets]

And then with regard to The US partnership, what's the cost difference between that versus your partnership with Rui? If you were to ignore the tariffs, how much more expensive might that be? If you could kind of give a little bit of an overview of that.

[Rani Kohen, Founder & Executive Chairman at SKYX Platforms]

Yeah, Pat, it's a great question. And what we're doing here is actually part of our collaboration with Profab Electronics, a prominent leader here Florida and also a player nationwide, is that our goal is together with them to fully automate many of our products and production that's fully automated. The cost difference is not significant. And this is our goal and we have a few ways to achieve that goal working with them. It's extremely advanced facility, 60,000 square foot.

[Rani Kohen, Founder & Executive Chairman at SKYX Platforms]

I think we shared that in the press release we had a couple months ago, forty five days ago probably. And their machinery and their sophistication level of production is very high and there's many major products that we intend to launch that we can with time, can fully automate their production here in The US. And by this, we mitigate most of the differences and it's made in The US. So I don't wanna promise it's gonna be cheaper, but fully automated can be very competitive.

[Patrick McCann, Equity Research Analyst at Noble Capital Markets]

Thanks. And then I also wanted to just ask a little bit about the additional investment primarily from the Schoenherr Group. So is there room to continue to add to that source of funds through the preferred offering? Also as long as we're on that topic, was curious if you could maybe give a little bit of an update on the hotel distribution channel as well as I would imagine that would be a potential partnership with the Schoenherr Group there as well.

[Rani Kohen, Founder & Executive Chairman at SKYX Platforms]

Yeah, with the last approximately 4,000,000 that we raised came from strategic investors and that's part of our broader round led by the Shaner Group. And you know, we always welcome strategic people that believe in us and would like to invest. And it's always good to take, you know, investments or to accept investments from strategic people that can help and are interested to to help us growing the company. So that's something that when we have the right opportunity, you know, we will do. But it really depends where we are from a market standpoint, but we feel today, where the stock is today, it's a very compelling, you know, offering from our perspective and it's a great win win for investors because they strongly believe in our future and they strongly believe in many cases that the mandate standardization might happen.

[Rani Kohen, Founder & Executive Chairman at SKYX Platforms]

So they want to be involved and they also really understand, as Steve mentioned, the value proposition we have in real estate and also for insurance companies that once we have the entire assortment here, we think that that might become and we're getting more and more products as we're rolling. So we expect to launch this quarter, announce a few additional new products here. And so the more product we get in, then we expect to start working with insurance companies here. Your second question regarding hotels is kind of same answer here. We are rolling production or started production with all the products that we need.

[Rani Kohen, Founder & Executive Chairman at SKYX Platforms]

If we're talking about recessed lights that we mentioned before, it's a multi billion unit market globally. And US is a very big market and still it's a small fixture, but plug and play is not only safer, it saves a lot of time and significant cost on the installation, probably 90%, if not more. And it's easy to replace because this is LED embedded. LED embedded is significant for our growth because today, bulbs are becoming less and less important in the market as everything is converting into LED integrated. So those are electronic chips that gives light, provide light.

[Rani Kohen, Founder & Executive Chairman at SKYX Platforms]

And when they burn or the driver burns, the only way to replace them is really replace the fixture. And that's the market is there's the most significant growth in the market is LED embedded. It goes on recessed lights and chandeliers and many other products. And if it goes wrong, the driver burns, if the light bulb burns, the only solution is to replace the entire fixture. So that helps us a lot and we're in production here, including exit signs and emergency lights that are key for hotels.

[Rani Kohen, Founder & Executive Chairman at SKYX Platforms]

Wall sconces are key for hotels, indoor and outdoor that we started receiving. And once we have the entire assortment that's going to include ceiling fans that we hope very soon to launch towards the summer and early, even before the summer. So once we have the entire assortment, it will position us to go forward with hotels. So we're looking forward to that. And this quarter, we have a lot of expectations of a product that started production and will arrive and our goal is to have the entire assortment here by the end of this quarter and, once we have it, I think, next half of the year, we're going to have some, more updates regarding the Pro and Builder market.

[Rani Kohen, Founder & Executive Chairman at SKYX Platforms]

And with that being said, the pro and builder market is a major emphasis of our business plan that we're looking forward to grow.

[Patrick McCann, Equity Research Analyst at Noble Capital Markets]

Great. I appreciate all the additional color. I'll jump back in the queue. Congrats on the quarter.

[Rani Kohen, Founder & Executive Chairman at SKYX Platforms]

Okay. And then we have Jack from Maxim Group.

[Jack Vander Aarde, SVP & Senior Research Analyst at Maxim Group]

Hey, Ronnie. Hey, Lenny. Thanks for the update. I appreciate it. Good to hear the continued growth momentum and looks like a solid control over the OpEx in this kind of challenging environment here.

[Jack Vander Aarde, SVP & Senior Research Analyst at Maxim Group]

A follow-up question on the manufacturing and tariff mitigation. With the recent announcement ProFab to establish a domestic supply chain and any other moves you're making, maybe you're making to establish domestic manufacturing. Do you have a goal for what percentage of products will be manufactured domestically? And then second part is, you mentioned you're working with Profact to increase automation of production. How long will that take until we're it's kind of like fully up to scale at capacity and utilization to get to whatever the envisioned automation is of the production ramp?

[Jack Vander Aarde, SVP & Senior Research Analyst at Maxim Group]

Just curious to hear your update there. Overall source of domestic manufacturing and then also how long will it take to get to automation?

[Rani Kohen, Founder & Executive Chairman at SKYX Platforms]

Yes, and Jack, thank you for your question. The broader question. So, as everyone knows, it's a day to day situation here with the tariffs, right? Because if you asked me this question three days ago, I'd probably answer it differently than I'm going to answer it now. So the good news is we really have four significant relationships here in The U.

[Rani Kohen, Founder & Executive Chairman at SKYX Platforms]

S. And it's a profile that are also investors and long term investors with us. So they're very talented and extremely capable. And we are exploring what the right product and when is the right time to do things in The U. S.

[Rani Kohen, Founder & Executive Chairman at SKYX Platforms]

That's definitely a goal we have. And this is we're exploring it. As we're exploring it, the announcement and tariffs going down again in China now brought the Chinese manufacturers back to the picture where they kind of were out or some of them that we have good relationship with them already have sources in Vietnam and Cambodia and in Taiwan. So they're not out, but China was out for now and now is back in play. So, for us is the more solutions we have, the more options we have, we're situated better and we're obviously always calculating where's the best place to produce.

[Rani Kohen, Founder & Executive Chairman at SKYX Platforms]

And the future goal is really to get a lot of production here in The US because we believe that's the best thing to do from the company for the company, for the country. And that's a good thing that we can achieve and we're definitely looking into it more than ever. But in the short term, we'll explore the best possibilities to get the product as fast as possible. And, but on the long term and maybe even shorter term, we're looking for some solutions to start production here in The U. S.

[Rani Kohen, Founder & Executive Chairman at SKYX Platforms]

We're still we just announced it forty five days ago and product is, we like to say, product, it's not a bakery here. So it takes a bit more time between tooling and other things that we're working on. But the good news is really we have all those options open to us and all of them are very good options that we have on the table.

[Jack Vander Aarde, SVP & Senior Research Analyst at Maxim Group]

Okay, great. I appreciate the color there. And then kind of a two part second question, then I'll hop back in the queue. You maybe just questions kind of just to clarify again or remind us of the safety code mandatory standardization process of the ceiling receptacle. And then just given the growing additions to the team of very well connected personnel.

[Jack Vander Aarde, SVP & Senior Research Analyst at Maxim Group]

So two things, I believe the earliest or next possible vote to receive mandatory standardization is around September 2026. So the question is really, will you get an indication in advance of that date? And then the second part is, what would would you expect a ramp of actual product orders to come in advance of that date as well? Thanks.

[Rani Kohen, Founder & Executive Chairman at SKYX Platforms]

So, the date, so what we're exploring now and what we said recently, there are several government organizations that their criteria is to save lives, mitigate injuries and property damages. And there's more than one organization that can influence a mandatory standardization. And what we are saying here at this point, we can't say more than this, but we are finding that there is ways to expedite some of the there's some non profit and some government associations that that's actually their obligation to find products like what we have that will save lives, injuries and property damages or mitigate property damages and injuries in a significant way. So the good news is that we are today exploring our possibilities similar like what I said with the manufacturers. But what we're finding recently is that there are several organizations that really their mandate is to save lives, mitigate injuries and property damages.

[Rani Kohen, Founder & Executive Chairman at SKYX Platforms]

So that's in addition to what you mentioned. Also important to say is a mandate will happen, so the date the mandate, if you mentioned the date and I don't want to go to details in date because the different ways, but when you mention the date, the most important date is the decision date because there's the mandate or effective date of situations like this is usually eighteen months or twenty four months ahead. So if you get a product mandated, what happened many times with seat belts and airbags and GFCI that you have in your bathrooms And another famous one is hair dryers. Someone knows how a hair dryer plug looks. It has a big lock on it with the GFCI.

[Rani Kohen, Founder & Executive Chairman at SKYX Platforms]

So when there's decision, a decision to mandate a product like this, it gives the market some time. So the decision date of a mandate is extremely important. Okay. And again, going, we're exploring ways to expedite it because our co team strongly believes that they met all the conditions, our product met all the conditions to become mandate and we're being looked at in a different angle recently.

[Jack Vander Aarde, SVP & Senior Research Analyst at Maxim Group]

Okay, great. Now that's really helpful color. I appreciate that Ronnie. I'll hop back in the queue. I may have a few more later.

[Jack Vander Aarde, SVP & Senior Research Analyst at Maxim Group]

Thanks.

[Rani Kohen, Founder & Executive Chairman at SKYX Platforms]

Okay. So yeah, I think today we're taking the calls only from analysts. So if you have another question, please do it. If not, if there's investors who want to call us, feel free to call our Co CEO Lenny Sokolov or email him through our PCG, our IR firm. And they will be happy to arrange a call with investors that want to talk to us.

[Rani Kohen, Founder & Executive Chairman at SKYX Platforms]

And if there's more analysts that want to ask questions, we'll be happy to take them. And if not, we're looking forward to the next call or hopefully some announcements prior to that next call.

[Operator]

There seems to be no more questions for today. I would like to turn the conference back over to Mr. Ronnie Cohen for any closing remarks.

[Rani Kohen, Founder & Executive Chairman at SKYX Platforms]

Thank you. Thank you everyone, Steve and Lenny for your comments and highlights here. And thank you to the team and thank you to all of you on the call. We're progressing and we look forward to share hopefully more good things soon. Thank you very much.

[Operator]

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Participants

Executives

• Rani Kohen, Founder & Executive Chairman
• Steven Schmidt, President
• Leonard Sokolow, Co-CEO

Analysts

• Patrick McCann, Equity Research Analyst at Noble Capital Markets
• Jack Vander Aarde, SVP & Senior Research Analyst at Maxim Group