During the Course of the Agreement Global Ventures Group Plans to Deploy SKYX’s Smart Technologies into Tens of Thousands of Homes and Hotel Rooms SKYX Expects to Deploy Hundreds of Thousands of Products into Massive Growth of Middle East Projects SKYX’s Technologies are Expected to Offer Long-Term Recurring Revenue Opportunities Through Monitoring, Subscriptions, and AI Services, in Addition to Product Upgrades, Interchangeability and Platform-Wide Integrations for Future Developments MIAMI, Oct. 28, 2025 ...

Company Overview - SKYX Platforms Corp. is a disruptive platform technology company with over 100 pending and issued patents globally and over 60 lighting and home décor websites [1][6] - The company's mission is to make homes and buildings safe and smart as the new standard, emphasizing high quality and ease of use while enhancing safety and lifestyle [6] Event Details - SKYX will present at the 19th annual LD Micro Main Event on October 20th at 9:30 AM PT in San Diego, California [1][3] - The event will run from October 19th to 21st, featuring around 120 companies presenting in half-hour increments and conducting one-on-one investor meetings [4][5] Leadership Engagement - Rani Kohen, Founder and Executive Chairman, and Lenny Sokolow, CEO, will be presenting and engaging with investors during the conference [1][3] - The presentation will focus on SKYX's growth strategy and recent milestones, providing an opportunity for direct engagement with investors [3]

SKYX Platforms Conference Summary Company Overview - **Company**: SKYX Platforms (NasdaqCM:SKYX) - **Industry**: Smart Home Technology and Electrical Solutions - **Key Products**: - Gen 1 Sky Plug - Gen 2 Smart Sky Plug - Gen 3 Sky All-in-One Smart Home Platform - **Patents**: Nearly 100 U.S. and global patents and patent applications, with 45 issued patents [3][11][12] Core Points and Arguments Product Innovations - **Gen 1 Sky Plug**: Enables safe installation of light fixtures and electronics in under a minute, recognized by the National Electrical Code (NEC) [4] - **Gen 2 Smart Sky Plug**: Integrates smart features such as phone control, voice control, and energy-saving modes, installed in seconds [4] - **Gen 3 Sky All-in-One Smart Home Platform**: Provides a comprehensive smart home solution, integrating various smart features and enhancing safety [5][27] Market Potential - **Total Addressable Market (TAM)**: Estimated at $500 billion in the U.S. alone, with 4.2 billion ceiling installations not including commercial [12] - **Revenue Streams**: Product sales, royalties, licensing, subscriptions, monitoring, and data aggregation [12] Strategic Partnerships - Collaborations with major retailers and manufacturers, including Home Depot, Wayfair, and Marriott [13][39] - Focus on both B2C and B2B channels, leveraging e-commerce and direct sales [12][36] Safety and Regulatory Compliance - SKYX's technology addresses significant safety concerns, reducing installation time and risk of electrical hazards [18][22] - The company has received approvals from ANSI, NEMA, and is included in the National Electrical Code [20][26] Upcoming Products and Developments - Launch of a combined smart heater and ceiling fan expected in Q4, anticipated to drive cash flow and product adoption [34][35] - Ongoing development of the Miami Smart City project, projected to generate significant revenue through the installation of over 500,000 units [39][40] Additional Important Insights - **Hotel Industry Penetration**: SKYX's technology is being adopted in hotel renovations, significantly reducing installation time and enhancing safety [25][42] - **Prefabricated Homes**: The company sees growth potential in the prefabricated home market, which is expected to benefit from easy installation of their products [32] - **Data and Monitoring Opportunities**: Post-sale revenue opportunities through monitoring and data aggregation, leveraging the smart capabilities of their devices [40] Conclusion SKYX Platforms is positioned as a leader in the smart home technology sector, with innovative products that enhance safety and efficiency. The company is actively expanding its market presence through strategic partnerships and addressing significant safety concerns in the electrical installation space. The upcoming product launches and large-scale projects like the Miami Smart City are expected to drive future growth and revenue.

Core Insights - SKYX Platforms Corp. is advancing its mission to make homes and buildings safer and smarter, with over 100 patents and a strong focus on innovative technologies [1][5] Market Acceptance, Progress and Recent Events - As of June 30, 2025, SKYX reported $15.7 million in cash and cash equivalents and raised an additional $3.25 million in September from an existing lead investor [2] - The company demonstrated its technology during a Marriott Hotel renovation, showcasing various smart lighting solutions [2] - SKYX will supply over 10,000 smart technologies to a 278-apartment project in Austin, Texas, developed by Landmark Companies [2] - The company is set to deploy over 500,000 units of its smart home technologies in Miami's $3 billion Urban Smart Home City project [2] - SKYX's Safety Code Standardization Team is gaining support for establishing mandatory safety standards for its technologies [2][7] - The company is on track for a winter launch of its turbo heater and ceiling fan, targeting a multi-billion-dollar market [2] - Management anticipates achieving cash flow positivity by the end of 2025, with revenues increasing for six consecutive quarters [2][3] Financial Performance - SKYX's revenues increased from $19 million in Q1 2024 to $23.1 million in Q2 2025, reflecting consistent growth [2][3] - Net cash used in operating activities decreased by 54% to $2 million in Q2 2025 compared to Q1 2025 [2] - Gross profit for Q2 2025 rose by 23% to $7 million, with a gross margin increase of 7% to 30.3% [3] Strategic Partnerships and Collaborations - SKYX secured $15 million in investments from strategic investors, including significant participation from company insiders [3] - A strategic manufacturing partnership with Profab Electronics aims to enhance the company's supply chain [3] - Collaborations with major retailers like Home Depot and Wayfair are in place to expand market reach [3] - The company is working with leading lighting manufacturers and prefabricated home builders to integrate its technologies [3] Safety Standardization and Insurance Implications - The Safety Code Standardization Team is led by industry veterans and is making progress towards mandatory safety standards for electrical technologies [7] - SKYX believes its products can save insurance companies billions by reducing risks associated with fires and electrocutions [7]

Core Insights - SKYX Platforms Corp. is set to supply over 10,000 units of its advanced smart plug and play technologies for a 278-apartment project in Austin, Texas, developed by Landmark Companies [2][3][4] - The collaboration aims to enhance safety, convenience, and design in modern living spaces, with a focus on integrating innovative technologies into future developments [4][5] Group 1: Company Overview - SKYX Platforms Corp. holds over 100 pending and issued patents globally and operates more than 60 lighting and home décor websites [2][5] - The company's mission is to make homes and buildings safer and smarter, emphasizing high quality and ease of use in its products [5] Group 2: Project Details - The Austin Manor project will feature various amenities, including swimming pools, a state-of-the-art gym, and landscaped green spaces [2][4] - The project is part of Landmark Companies' extensive experience in developing modern homes and buildings, with over 27 years in the industry [3][4] Group 3: Strategic Collaboration - Julia Baytler, CEO of Landmark Companies, expressed excitement about integrating SKYX's technologies to raise living standards [4] - Rani Kohen, Founder and Executive Chairman of SKYX, highlighted the collaboration's potential to enhance home values and create smarter buildings [4]

Summary of SKYX Platforms Conference Call Company Overview - **Company**: SKYX Platforms (NasdaqCM:SKYX) - **Industry**: Smart home technology and electrical installation solutions Key Points and Arguments 1. **Product Innovation**: SKYX has developed a series of products aimed at simplifying electrical installations, including the Gen 1 Sky Plug, Gen 2 Smart Sky Plug, and Gen 3 all-in-one smart home platform, which enhance safety and convenience for users [3][4][5] 2. **Market Penetration**: The company has been selected to provide its technologies for a $3 billion smart urban city project in Miami, which will deploy over 500,000 units of SKYX products [7][9] 3. **Hospitality Sector Engagement**: SKYX has demonstrated its technology in Marriott SpringHill Suites, showcasing the efficiency and safety of its installation process, which significantly reduces renovation time and costs [10][11] 4. **Advisory Board**: The company boasts a strong advisory board with industry veterans, including former executives from Nielsen, Home Depot, and Disney, enhancing its credibility and strategic direction [13][14] 5. **Regulatory Approvals**: SKYX has received significant regulatory approvals, including recognition in the National Electrical Code, which positions its products as industry standards [22][23] 6. **Safety Impact**: The technology addresses safety concerns associated with traditional electrical installations, potentially reducing the annual fatalities and injuries related to electrical mishaps [25][26] 7. **Revenue Streams**: The company anticipates diverse revenue streams from product sales, licensing, and data aggregation, with a total addressable market in the U.S. exceeding $500 billion [16][18] 8. **Future Products**: Upcoming products include an all-in-one fan and heater, expected to launch in Q4, which will further enhance the company's market presence [31][32] Additional Important Content - **Market Trends**: The prefabricated modular home market is identified as a significant growth opportunity, with potential for increased adoption in the U.S. [30] - **Technological Integration**: The Gen 3 platform integrates various smart features, enhancing user experience and operational efficiency [27][28] - **Strategic Partnerships**: Collaborations with major retailers and builders, including Home Depot and GE, are crucial for market penetration and product distribution [19][20] This summary encapsulates the essential insights from the SKYX Platforms conference call, highlighting the company's innovative approach, market opportunities, and strategic positioning within the smart home technology industry.

Summary of SKYX Platforms Corp. Conference Call Company Overview - **Company**: SKYX Platforms Corp. (NasdaqCM:SKYX) - **Industry**: Smart home technology and electrical solutions Key Points and Arguments 1. **Leadership Team**: The leadership team includes experienced individuals such as Rani Kohen (Founder), Steven Schmidt (President), and Bob Nardelli (former CEO of Home Depot), highlighting a strong background in retail and technology [3][4] 2. **Patents and Market Position**: The company holds over 100 patents, with 45 issued in the U.S. and globally, indicating a strong intellectual property position [6] 3. **Total Addressable Market (TAM)**: The TAM in the U.S. is over $500 billion, with 4.2 billion ceiling applications, showcasing significant market potential [6] 4. **Revenue Streams**: Revenue is generated through product sales, royalties, licensing, subscription monitoring, and data aggregation [7] 5. **Historical Revenue Growth**: Revenue increased from $24 million in 2022 to $58.8 million in 2023, with projections of $86.3 million for 2024, indicating strong growth [8][9] 6. **Collaborations**: Partnerships with major companies like Home Depot, GE Licensing Group, and Kichler enhance market reach and credibility [9] 7. **Smart City Project**: The $3 billion Smart City project in Miami is expected to generate over 500,000 unit sales of their products, marking a significant milestone for the company [10][11] 8. **Regulatory Approvals**: The company has received multiple regulatory approvals, including being codified in the National Electrical Code, which is crucial for market adoption [16][17] 9. **Installation Efficiency**: The product installation is designed to save nearly 90% of time and cost compared to traditional methods, making it attractive for builders and developers [19][20] 10. **Product Development**: The all-in-one smart heater fan is anticipated to be a key product for the upcoming winter season, with significant interest from channels [25][26] 11. **Gross Margins**: Current gross margins are around 30%, with expectations for improvement through a better product mix [27] 12. **Cash Flow Goals**: The company aims to achieve cash flow break-even by the end of 2025, indicating a focus on financial sustainability [28] Additional Important Content - **Market Penetration**: The company is expanding its presence in both B2C and B2B markets, with a focus on builders and large contractors [6][8] - **Technological Integration**: The products are designed to integrate seamlessly with smart home technologies, enhancing user experience [21][22] - **Modular Home Opportunities**: There is a significant opportunity in the modular prefabricated home market, which is currently under-penetrated [23][24] - **Future Outlook**: The company is optimistic about scaling its success from the Miami Smart City project to other large developments globally [26] This summary encapsulates the key insights from the conference call, providing a comprehensive overview of SKYX Platforms Corp.'s current position and future prospects in the smart home technology industry.

Core Insights - SKYX Platforms Corp. successfully demonstrated its advanced technologies during a renovation at a Marriott SpringHill Suites Hotel, highlighting significant safety, time savings, and cost savings [1][3][7] - The company expects its technologies to be utilized in additional Marriott renovations and other hotel brands, as major hotel chains typically require full renovations every 7 years [3][7] Technology and Innovation - The demonstration incorporated SKYX's smart plug & play technologies, including various lighting solutions such as ceiling lighting, recessed lights, downlights, wall lights, EXIT and emergency lights, and plug-in LED backlight mirrors [2][3] - SKYX holds over 100 pending and issued patents globally, emphasizing its commitment to innovation in making homes and buildings safer and smarter [1][8] Market Position and Future Outlook - The company aims to scale its footprint and unlock long-term value through recurring revenue opportunities, as stated by its Founder and Executive Chairman [7] - The Shaner Hotel Group recognizes the significant value of SKYX's technologies in terms of time and cost savings, indicating strong investor confidence in the company's future prospects [7]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Cautionary Note Regarding Forward-Looking Statements](index=4&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section highlights that the report contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially - The report contains forward-looking statements that are subject to risks, uncertainties, and other factors, which may cause actual results to differ materially from projections[8](index=8&type=chunk)[9](index=9&type=chunk) - Key risks include the ability to successfully launch and gain market acceptance for smart products, manage and grow operations (including Belami, Inc.), raise additional financing, comply with debt terms, reliance on third-party manufacturers, and potential legal proceedings[10](index=10&type=chunk) - Macroeconomic conditions, such as unstable market conditions, governmental regulations, geopolitical conflicts, inflation, labor shortages, supply chain constraints, and cybersecurity breaches, are also identified as potential impact factors[10](index=10&type=chunk) [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for SKYX Platforms Corp., including Balance Sheets, Statements of Operations, Stockholders' Equity, and Cash Flows, along with detailed notes [Consolidated Balance Sheets (Unaudited)](index=6&type=section&id=Consolidated%20Balance%20Sheets%20(Unaudited)) The Consolidated Balance Sheets detail the company's financial position, showing changes in assets, liabilities, and equity Consolidated Balance Sheet Highlights | Metric | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | |---|---|---|---|---| | Cash and cash equivalents | $12,846,554 | $12,639,441 | $207,113 | 1.64% | | Total current assets | $20,431,228 | $20,374,450 | $56,778 | 0.28% | | Total Assets | $64,439,039 | $65,887,047 | $(1,448,008) | -2.20% | | Total current liabilities | $29,037,927 | $26,135,511 | $2,902,416 | 11.11% | | Total liabilities | $58,749,100 | $56,833,619 | $1,915,481 | 3.37% | | Total stockholders' equity | $689,939 | $4,053,428 | $(3,363,489) | -82.98% | - The company's **total assets** decreased by approximately **$1.45 million**, while **total liabilities** increased by **$1.92 million**, leading to a significant **decrease** in **total stockholders' equity** by **$3.36 million**[13](index=13&type=chunk)[14](index=14&type=chunk) [Consolidated Statements of Operations (Unaudited)](index=8&type=section&id=Consolidated%20Statements%20of%20Operations%20(Unaudited)) The Consolidated Statements of Operations show the company's financial performance, with increased revenue but also higher operating and interest expenses, resulting in a larger net loss Consolidated Statements of Operations Highlights | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | |---|---|---|---|---|---|---|---|---| | Revenue | $23,061,655 | $21,446,148 | $1,615,507 | 7.53% | $43,175,593 | $40,423,969 | $2,751,624 | 6.81% | | Cost of revenues | $16,064,486 | $14,869,521 | $1,194,965 | 8.04% | $30,466,974 | $28,269,292 | $2,197,682 | 7.77% | | Selling and marketing expenses | $6,185,017 | $6,271,708 | $(86,691) | -1.38% | $13,012,437 | $12,798,524 | $213,913 | 1.67% | | General and administrative expenses | $8,333,265 | $6,540,218 | $1,793,047 | 27.42% | $14,930,320 | $14,479,799 | $450,521 | 3.11% | | Loss from operations | $(7,521,113) | $(6,235,299) | $(1,285,814) | 20.62% | $(15,234,138) | $(15,123,646) | $(110,492) | 0.73% | | Net loss | $(8,826,929) | $(7,462,949) | $(1,363,980) | 18.28% | $(17,879,057) | $(17,139,150) | $(739,907) | 4.32% | | Net loss per share - basic and diluted | $(0.08) | $(0.08) | $0.00 | 0.00% | $(0.17) | $(0.18) | $0.01 | -5.56% | - **Revenue** increased by **7.53%** for the three months and **6.81%** for the six months ended June 30, 2025, primarily due to increased sales of lighting and heating products[16](index=16&type=chunk)[90](index=90&type=chunk) - **Net loss** increased by **18.28%** for the three months and **4.32%** for the six months ended June 30, 2025, driven by higher operating expenses, particularly general and administrative expenses, and increased interest expense[16](index=16&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk) [Consolidated Statements of Stockholders' Equity (Unaudited)](index=9&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity%20(Unaudited)) The Consolidated Statements of Stockholders' Equity detail changes in preferred stock, common stock, additional paid-in capital, and accumulated deficit, reflecting new stock issuances and increased deficit Stockholders' Equity Changes (Six Months Ended June 30) | Metric | 2025 | 2024 | |---|---|---| | Series A-1 Preferred Stock (value) | $9,174,167 | $0 | | Common stock and paid-in capital | $191,667,028 | $172,426,254 | | Accumulated Deficit | $(200,151,256) | $(162,942,164) | | Total stockholders' equity | $689,939 | $9,484,090 | - **Total stockholders' equity** significantly decreased from **$9.48 million** in 2024 to **$0.69 million** in 2025 for the six-month period, primarily due to an increased accumulated deficit[19](index=19&type=chunk) - The company issued **154,000 shares** of Series A-1 Preferred Stock for **$3.67 million** and **3,875,013 shares** of common stock through offerings for **$4.67 million** during the six months ended June 30, 2025[19](index=19&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk) [Consolidated Statements of Cash Flows (Unaudited)](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) The Consolidated Statements of Cash Flows show decreased net cash used in operating activities and increased net cash from financing, leading to a positive change in cash in 2025 Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30) | Activity | 2025 | 2024 | |---|---|---| | Net cash used in operating activities | $(6,309,778) | $(10,397,019) | | Net cash used in investing activities | $(775,365) | $(279,277) | | Net cash provided by financing activities | $7,292,256 | $3,847,710 | | Change in cash, cash equivalents and restricted cash | $207,113 | $(6,828,586) | | Cash, cash equivalents and restricted cash at end of period | $15,707,608 | $15,601,677 | - **Net cash used in operating activities** decreased by approximately **$4.09 million**, while **net cash provided by financing activities** increased by **$3.44 million**, primarily from stock issuances[21](index=21&type=chunk) - The company's **cash, cash equivalents, and restricted cash** increased by **$207,113** in 2025, a significant improvement from a **decrease** of **$6.83 million** in 2024[21](index=21&type=chunk) [Notes to Consolidated Financial Statements (Unaudited)](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(Unaudited)) These notes provide detailed explanations and disclosures for the unaudited consolidated financial statements, covering operations, accounting policies, and specific financial accounts [NOTE 1. ORGANIZATION AND NATURE OF OPERATIONS](index=12&type=section&id=NOTE%201.%20ORGANIZATION%20AND%20NATURE%20OF%20OPERATIONS) SKYX Platforms Corp. develops advanced-safe-smart platform technologies and markets home furnishings, facing a 'going concern' doubt due to recurring losses - SKYX Platforms Corp. develops advanced-safe-smart platform technologies for light fixtures, ceiling fans, and other electrically wired products, featuring plug-and-play installation and smart controls via the SkyHome App[23](index=23&type=chunk)[24](index=24&type=chunk) - The company also markets home lighting, ceiling fans, and other home furnishings from third parties since April 2023[25](index=25&type=chunk) - A **'going concern' doubt** exists due to recurring operating losses (**$6.3 million** net cash used in operations for H1 2025) and an **$8.6 million** working capital deficit as of June 30, 2025, despite **$15.7 million** in cash and cash equivalents[26](index=26&type=chunk) - Management plans to mitigate the **going concern** risk by increasing revenues and margins, and generating cash through ATM offerings or other equity/debt financing[27](index=27&type=chunk) [NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=12&type=section&id=NOTE%202.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines significant accounting policies, including GAAP basis, use of estimates, consolidation, and policies for cash, inventory, and income taxes - Financial statements are prepared in accordance with GAAP for interim statements, relying on management estimates and assumptions[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) - The consolidated financial statements include the results of SKYX Platforms Corp. and its subsidiaries, such as Belami, Inc[32](index=32&type=chunk) Cash, Cash Equivalents, and Restricted Cash | Item | June 30, 2025 | December 31, 2024 | |---|---|---| | Cash and cash equivalents | $12,846,554 | $12,639,441 | | Restricted cash | $2,861,054 | $2,861,054 | | Total | $15,707,608 | $15,500,495 | Inventory Composition | Item | June 30, 2025 | December 31, 2024 | |---|---|---| | Inventory, component parts | $1,777,306 | $1,901,922 | | Inventory, finished goods | $2,627,136 | $3,183,424 | | Allowance | $(1,300,000) | $(1,300,000) | | Inventory-total | $3,104,442 | $3,785,346 | - New FASB standards on income tax disclosures (effective 2025) and expense disaggregation (effective 2026) are being evaluated for their impact[44](index=44&type=chunk)[45](index=45&type=chunk) [NOTE 3. PROPERTY AND EQUIPMENT](index=16&type=section&id=NOTE%203.%20PROPERTY%20AND%20EQUIPMENT) Property and equipment, net, increased to **$1.99 million** as of June 30, 2025, primarily due to a rise in internal-use software Property and Equipment, Net | Item | June 30, 2025 | December 31, 2024 | |---|---|---| | Equipment and furniture | $924,627 | $924,627 | | Internal-use software | $1,580,027 | $804,660 | | Leasehold improvements | $360,003 | $360,003 | | Total, net | $1,992,228 | $1,349,993 | - **Internal-use software** significantly increased from **$804,660** to **$1.58 million**, contributing to the overall rise in **property and equipment**[47](index=47&type=chunk) - **Depreciation expense** amounted to **$133,132** as of June 30, 2025[47](index=47&type=chunk) [NOTE 4. INTANGIBLE ASSETS AND GOODWILL](index=16&type=section&id=NOTE%204.%20INTANGIBLE%20ASSETS%20AND%20GOODWILL) Intangible assets, net, decreased to **$4.17 million** due to amortization, while goodwill remained constant at **$16.16 million** Intangible Assets, Net | Item | June 30, 2025 (Net carrying value) | December 31, 2024 (Net carrying value) | |---|---|---| | Customer relationships | $3,107,143 | $3,428,571 | | E-commerce technology platforms | $485,126 | $1,156,258 | | Patents and other | $574,955 | $604,884 | | Total, net | $4,167,224 | $5,189,713 | - **Amortization expense** on **intangible assets** was **$1.02 million** for the six months ended June 30, 2025, compared to **$880,440** for the same period in 2024[48](index=48&type=chunk) - **Goodwill** remained unchanged at **$16.16 million**[13](index=13&type=chunk) [NOTE 5. DEBTS](index=17&type=section&id=NOTE%205.%20DEBTS) Total debt, net of unamortized debt discount, was **$16.62 million** as of June 30, 2025, with increased interest expense and new convertible notes issued Debt Components (Net of Discount) | Item | June 30, 2025 | December 31, 2024 | |---|---|---| | Convertible Notes | $15,592,408 | $15,592,408 | | Notes payable to financial institutions and others | $3,945,507 | $4,515,297 | | Total Debt | $19,537,915 | $20,107,705 | | Unamortized debt discount | $(2,920,229) | $(3,477,227) | | Debt, net of Unamortized debt Discount | $16,617,686 | $16,630,478 | - **Interest expense** for the six months ended June 30, 2025, was **$2.64 million**, an **increase** from **$2.02 million** in the prior year[50](index=50&type=chunk) - The company issued convertible promissory notes totaling **$3.12 million** to Belami sellers in substitution of cash obligations, bearing **10% annual interest** and convertible at **$3.00 per share**[51](index=51&type=chunk) - A **$1.0 million** convertible note was issued to GE in April 2024, due April 2027, non-interest bearing, and convertible at **$1.07 per share**[52](index=52&type=chunk) [NOTE 6. OPERATING LEASE LIABILITIES](index=18&type=section&id=NOTE%206.%20OPERATING%20LEASE%20LIABILITIES) The company has operating lease liabilities for office and showroom spaces, with a weighted-average remaining lease term of **89 months** and a discount rate of **6.48%** - The company holds significant **operating lease liabilities** for office and showroom spaces, including a **124-month** lease for its future headquarters[53](index=53&type=chunk)[54](index=54&type=chunk) Operating Lease Information (Six Months Ended June 30) | Metric | 2025 | 2024 | |---|---|---| | Cash paid for operating lease liabilities | $1,141,327 | $1,021,684 | | Rights-of-use obtained in exchange for new operating lease liabilities | $0 | $662,696 | | Fixed rent payments | $1,848,803 | $1,801,418 | | Lease - Depreciation expense | $1,013,688 | $1,041,593 | | Weighted-average discount rate | 6.48% | 6.48% | | Weighted-average remaining lease term (in months) | 89 | 98 | [NOTE 7. ROYALTY OBLIGATIONS](index=18&type=section&id=NOTE%207.%20ROYALTY%20OBLIGATIONS) The company owes **$1.5 million** to General Electric (GE) under a past license agreement, payable in quarterly tranches through 2026 - The company owes **$1.5 million** to GE as of June 30, 2025, from a license agreement that expired in 2023[57](index=57&type=chunk) - **Payments** are scheduled in quarterly **tranches**, with **$0.8 million** due in 2024-2025 and **$0.9 million** in 2026[57](index=57&type=chunk) - An additional **$1.4 million** **obligation** to GE was reduced by **$400,000** in April 2024, in exchange for a **$1.0 million** convertible promissory note[57](index=57&type=chunk) [NOTE 8. ACCOUNTS PAYABLE AND ACCRUED EXPENSES](index=19&type=section&id=NOTE%208.%20ACCOUNTS%20PAYABLE%20AND%20ACCRUED%20EXPENSES) Total accounts payable and accrued expenses increased to **$16.64 million** as of June 30, 2025, driven by higher trade payables and accrued interest Accounts Payable and Accrued Expenses | Item | June 30, 2025 | December 31, 2024 | |---|---|---| | Accrued interest, convertible notes | $1,243,060 | $1,044,708 | | Accrued dividends | $269,228 | $212,667 | | Trade payables | $13,600,641 | $10,043,423 | | Accrued compensation | $1,530,322 | $2,979,131 | | Total | $16,643,251 | $14,279,929 | - **Trade payables** saw a significant **increase** of over **$3.5 million**, indicating increased purchasing or extended **payment terms**[58](index=58&type=chunk) [NOTE 9. RELATED PARTY TRANSACTIONS](index=19&type=section&id=NOTE%209.%20RELATED%20PARTY%20TRANSACTIONS) Related party transactions include **$950,000** in convertible notes with **$187,597** accrued interest, and **$20,000** in preferred dividends paid - Convertible notes from related parties (director and Co-CEOs) totaled **$950,000**, with accrued **interest** of **$187,597** as of June 30, 2025[59](index=59&type=chunk) - **Interest expense** to related parties was **$35,696** for the six months ended June 30, 2025[59](index=59&type=chunk) - Preferred **dividends** of **$20,000** were paid/declared to related parties during the six months ended June 30, 2025[60](index=60&type=chunk) [NOTE 10. STOCKHOLDERS' EQUITY](index=19&type=section&id=NOTE%2010.%20STOCKHOLDERS%27%20EQUITY) This note details changes in common stock, preferred stock, stock options, restricted stock units, and warrants, including issuances and compensation expenses Common Stock Issuances (Six Months Ended June 30, 2025) | Transaction Type | Shares Issued | Valuation ($) | Average Value Per Share | |---|---|---|---| | Common stock issued, pursuant to services provided | 3,295,268 | $6,653,522 | $1.16 – 1.87 | | Common stock issued pursuant to stock at the market offering, net | 3,875,013 | $4,672,383 | $1.21 | | Common stock issued pursuant to conversion of preferred stock and related dividends | 251,935 | $503,870 | $2.00 | - Series A-1 Preferred **Stock balance** increased to **374,000 shares** with a carrying **value** of **$9.17 million** as of June 30, 2025, following issuances and a conversion to common stock[62](index=62&type=chunk) - **Stock options** outstanding decreased slightly to **31,470,322 shares** with a weighted average **exercise price** of **$6.80** as of June 30, 2025[63](index=63&type=chunk) - Non-vested restricted **stock units** decreased to **5,528,579 shares** with a weighted average grant **fair value** of **$1.62** as of June 30, 2025[66](index=66&type=chunk) - Total **stock-based compensation expense** recognized for the six months ended June 30, 2025, was **$6.65 million** (**$5.41 million** for RSUs/RSAs and **$1.24 million** for stock options)[68](index=68&type=chunk) [NOTE 11. CONCENTRATIONS OF RISKS AND SEGMENT](index=23&type=section&id=NOTE%2011.%20CONCENTRATIONS%20OF%20RISKS%20AND%20SEGMENT) The company operates in one segment, advanced-safe-smart technologies, with cash concentrated in two financial institutions and two third-party payors representing **47%** of accounts receivable - The company operates as a single segment focused on advanced-safe-smart technologies and related products[77](index=77&type=chunk) - No single customer accounted for **10%** or more of **revenue** or **accounts receivable**, but two third-party payors represented **47%** of total **accounts receivable** as of June 30, 2025[73](index=73&type=chunk) - **Cash and cash equivalents** are held primarily with two financial institutions, with deposits exceeding FDIC insured amounts[75](index=75&type=chunk) Consolidated Revenues and Net Loss (Six Months Ended June 30) | Metric | 2025 | 2024 | |---|---|---| | Revenues from external customers and consolidated revenues | $43,175,593 | $40,423,969 | | Total operating expenses, net | $58,409,731 | $55,547,615 | | Net loss | $(17,879,057) | $(17,139,150) | [NOTE 12. SUBSEQUENT EVENTS](index=24&type=section&id=NOTE%2012.%20SUBSEQUENT%20EVENTS) Management found no significant subsequent events requiring adjustment or disclosure between June 30, 2025, and the financial statement issuance date - No significant subsequent events requiring adjustment or disclosure were identified between June 30, 2025, and the financial statement issuance date[80](index=80&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's Discussion and Analysis provides an overview of the company's business, recent developments, and a detailed comparison of financial results, liquidity, and accounting policies [Overview](index=25&type=section&id=Overview) SKYX Platforms Corp. develops advanced-safe-smart platform technologies with **100 U.S. and global patents**, targeting a **$500 billion** market, while monitoring macroeconomic impacts - SKYX Platforms Corp. specializes in advanced-safe-smart platform technologies for electrical products, offering plug-and-play installation and smart controls via the SkyHome App[82](index=82&type=chunk) - The company holds **100 U.S. and global patents** and has received electrical code approvals (UL, cUL, CE), with inclusion in the NEC **Code Book**[82](index=82&type=chunk) - The estimated total addressable **market** in the United States exceeds **$500 billion**, with third-generation smart-advanced platforms expected in 2025[82](index=82&type=chunk)[83](index=83&type=chunk) - Monetary and trade policies, including tariffs, **interest rates**, and supply chain constraints, may adversely affect operating results, though the material impact to date has been limited[84](index=84&type=chunk) [Recent Developments](index=26&type=section&id=Recent%20Developments) Recent developments include modifying Belami acquisition obligations by issuing **$3.12 million** in convertible promissory notes and generating **$14.2 million** from preferred stock issuances - Modified Belami acquisition **obligations** in March 2024 (amended June 2025), issuing **$3.12 million** in convertible promissory notes to sellers, bearing **10% annual interest** and convertible at **$3.00 per share**[86](index=86&type=chunk) - Generated **$14.2 million** in **proceeds** from the issuance of Series A and A-1 Preferred **Stock** between October 2024 and May 2025[87](index=87&type=chunk) - The company continues its **ATM offering program**, which began in Q2 2023[87](index=87&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) For the three and six months ended June 30, 2025, the company experienced revenue growth but also increased operating expenses and interest expense, leading to a higher net loss Results of Operations Summary (YoY Comparison) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | |---|---|---|---|---|---|---|---|---| | Revenue | $23,061,655 | $21,446,148 | $1,615,507 | 8% | $43,175,593 | $40,423,969 | $2,751,624 | 7% | | Total expenses | $30,582,768 | $27,681,447 | $2,901,321 | 10% | $58,409,731 | $55,547,615 | $2,862,116 | 5% | | Operating loss | $(7,521,113) | $(6,235,299) | $(1,285,814) | 21% | $(15,234,138) | $(15,123,646) | $(110,492) | (1)% | | Net loss | $(8,826,929) | $(7,462,949) | $(1,363,980) | 18% | $(17,879,057) | $(17,139,150) | $(739,907) | 4% | [Revenue](index=27&type=section&id=Revenue) Revenue increased by **8%** for the three months and **7%** for the six months ended June 30, 2025, primarily due to higher unit sales of lighting and heating products - **Revenue** increased by **$1.62 million (8%)** for the three months and **$2.75 million (7%)** for the six months ended June 30, 2025[89](index=89&type=chunk) - The **increase** is primarily due to an increased number of **units** of lighting and heating products sold[90](index=90&type=chunk) - Anticipates higher **revenues** in 2025, mainly from the sale of advanced and smart products[90](index=90&type=chunk) [Cost of Revenues](index=28&type=section&id=Cost%20of%20Revenues) Cost of revenues increased proportionately with the rise in revenues, reflecting the higher volume of products sold, a trend expected to continue in 2025 - **Cost of revenues** increased by **$1.19 million (8%)** for the three months and **$2.20 million (8%)** for the six months ended June 30, 2025, proportionate to the **increase** in **revenues**[89](index=89&type=chunk)[91](index=91&type=chunk) - The company expects **cost of revenues** to **increase** in 2025, commensurate with anticipated **revenue** growth[92](index=92&type=chunk) [Selling and Marketing Expenses](index=28&type=section&id=Selling%20and%20Marketing%20Expenses) Selling and marketing expenses remained relatively unchanged for the six months ended June 30, 2025, with a decrease in share-based payments offset by increased program expenses - **Selling and marketing expenses** were relatively unchanged, with a slight **decrease** of **$86,691 (-1%)** for the three months and an **increase** of **$213,913 (2%)** for the six months ended June 30, 2025[89](index=89&type=chunk) - Changes were primarily due to lower share-based **payments** for marketing personnel (approx. **$1.0 million** **decrease** in Q2 2025) offset by increased sales and marketing program **expenses**[93](index=93&type=chunk) [General and Administrative Expenses](index=28&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses increased significantly by **27%** for the three months and **3%** for the six months ended June 30, 2025, primarily due to a substantial rise in share-based payments - **General and administrative expenses** increased by **$1.79 million (27%)** for the three months and **$450,521 (3%)** for the six months ended June 30, 2025[89](index=89&type=chunk) - The **increase** is primarily attributed to increased share-based **payments** of approximately **$1.6 million** during the second quarter of 2025[94](index=94&type=chunk) [Interest Expense](index=28&type=section&id=Interest%20Expense) Interest expense increased by **6%** for the three months and **31%** for the six months ended June 30, 2025, mainly due to higher interest charges from increased weighted average debt - **Interest expense** increased by **$78,166 (6%)** for the three months and **$629,415 (31%)** for the six months ended June 30, 2025[89](index=89&type=chunk) - The **increase** resulted primarily from **interest charges** related to increased **interest-bearing** weighted average **debt** in the first quarter of 2024[95](index=95&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company had **$15.7 million** in cash, a **$8.5 million** working capital deficit, and recurring operating losses, leading to a 'going concern' doubt - **Cash, cash equivalents, and restricted cash** totaled **$15.7 million** as of June 30, 2025[97](index=97&type=chunk) - Raised **$4.8 million** from common **stock** offerings and **$14.2 million** from preferred **stock** issuances during the six months ended June 30, 2025[97](index=97&type=chunk) - The company has a working capital **deficit** of **$8.5 million** as of June 30, 2025, and recurring operating **losses**, leading to a **'going concern' doubt**[101](index=101&type=chunk)[105](index=105&type=chunk) - Management plans to mitigate the **going concern** risk through continued growth, increased **revenues** and margins, and additional **equity** or **debt** financing[106](index=106&type=chunk) - Total fixed **rate obligations** amount to approximately **$20.0 million** as of June 30, 2025, plus **$1.5 million** in royalty **obligations** to GE[100](index=100&type=chunk) [Non-GAAP Financial Measures](index=31&type=section&id=Non-GAAP%20Financial%20Measures) Management uses **EBITDA, as adjusted**, as a non-GAAP financial measure to evaluate business performance, which improved slightly to **$(6.30 million)** in 2025 - **EBITDA, as adjusted**, is used by management to evaluate business performance, excluding items like **interest expense**, amortization, impairment, and share-based **payments**[107](index=107&type=chunk) EBITDA, as Adjusted (Six Months Ended June 30) | Metric | 2025 | 2024 | |---|---|---| | Net loss | $(17,879,057) | $(17,139,150) | | Share-based payments | $6,653,521 | $6,070,935 | | Interest expense | $2,644,919 | $2,015,504 | | Depreciation, amortization | $2,280,154 | $2,399,350 | | EBITDA, as adjusted | $(6,300,463) | $(6,653,361) | - Adjusted **EBITDA** improved slightly from **$(6.65 million)** in 2024 to **$(6.30 million)** in 2025 for the six-month period[108](index=108&type=chunk) [Critical Accounting Policies](index=31&type=section&id=Critical%20Accounting%20Policies) This section reiterates the company's critical accounting policies, emphasizing significant management estimates and judgments in fair value measurements, stock-based compensation, and revenue recognition - The preparation of financial statements requires significant management estimates and assumptions, impacting various **assets** and **liabilities**[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk) - **Fair value** of financial instruments is determined using a three-tier hierarchy, prioritizing quoted prices in active markets (Level 1) and using unobservable inputs (Level 3) when necessary[114](index=114&type=chunk)[118](index=118&type=chunk) - **Stock-based compensation** is measured at grant-date **fair value** using the Black-Scholes option pricing model and expensed over the vesting period[115](index=115&type=chunk)[116](index=116&type=chunk) - **Revenue** is recognized when control of promised goods or services is transferred to customers, following a five-step model[117](index=117&type=chunk)[119](index=119&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, SKYX Platforms Corp. is not required to provide quantitative and qualitative disclosures about market risk in this report - The Company, as a 'smaller reporting company,' is exempt from providing quantitative and qualitative disclosures about **market risk**[120](index=120&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting - Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[122](index=122&type=chunk) - There were no material changes in internal control over financial reporting during the quarter ended June 30, 2025[123](index=123&type=chunk) [PART II. OTHER INFORMATION](index=34&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any material legal matters or claims, with liabilities for legal proceedings recorded when a loss is probable and estimable - As of the report date, the Company is not a party to any material legal matters or claims[126](index=126&type=chunk) - **Liabilities** for legal proceedings are recorded when a **loss** is probable and reasonably estimable[127](index=127&type=chunk) [Item 1A. Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) This section refers readers to the Annual Report on Form 10-K for risk factors, with an expanded discussion on the potential adverse impact of monetary and trade policies - No material changes to **risk factors** from the Annual Report on Form 10-K, except for an expanded discussion on monetary and trade policies[128](index=128&type=chunk) - Monetary and trade policies (tariffs, **increases** in **interest rates**, supply and overhead **costs**, and transportation **costs**) may adversely affect operating results, and the company may not be able to offset increased **costs** with increased sales prices[129](index=129&type=chunk) - The company is exploring alternatives to move production away from China and repatriate manufacturing of certain components to the U.S. to mitigate trade policy impacts[129](index=129&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2025, the company issued **100,000 shares** of common stock, warrants for **64,750 shares**, and extended the conversion period for **$3.12 million** in convertible notes - Issued **100,000 shares** of common **stock** to a contractor and warrants for **64,750 shares** to a placement agent during Q2 2025[130](index=130&type=chunk) - Extended the conversion period for **$3.12 million** in convertible notes from May 2025 to January 2026[130](index=130&type=chunk) Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares That May Yet be Purchased Under the Plans or Programs | |---|---|---|---|---| | April 1-April 30, 2025 | — | $ — | — | — | | May 1-May 31, 2025 | 70,683 | 1.44 | — | — | | June 1-June 30, 2025 | — | — | — | — | | Total | 70,683 | $ 1.44 | — | — | [Item 3. Defaults Upon Senior Securities](index=35&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - No defaults upon senior securities were reported[133](index=133&type=chunk) [Item 4. Mine Safety Disclosures](index=35&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Mine Safety Disclosures are not applicable to the Company[134](index=134&type=chunk) [Item 5. Other Information](index=35&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted, modified, or terminated any Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements during Q2 2025 - No directors or executive officers adopted, modified, or terminated Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements during Q2 2025[135](index=135&type=chunk) [Item 6. Exhibits](index=36&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q, including various agreements, corporate governance documents, certifications, and XBRL financial statements - The exhibits include Stock Purchase Agreements, Articles of Incorporation and Amendments, Certificates of Designation for Preferred Stock, Bylaws, Securities Purchase Agreements, and Sarbanes-Oxley Act certifications[136](index=136&type=chunk) - Financial statements for the quarter ended June 30, 2025, are provided in inline XBRL format[136](index=136&type=chunk) [Signatures](index=37&type=section&id=Signatures) The report is duly signed on behalf of SKYX Platforms Corp. by its Co-Chief Executive Officers and Chief Financial Officer as of August 12, 2025 - The report was signed by Co-Chief Executive Officers John P. Campi and Leonard J. Sokolow, and Chief Financial Officer Marc-Andre Boisseau on August 12, 2025[140](index=140&type=chunk)

Financial Performance - Company reported record revenues of $23.1 million for the second quarter of 2025, an increase of 15% from $20.1 million in the first quarter of 2025 and 8% from $21.4 million in the second quarter of 2024 [2][8][14] - Gross profit for the second quarter of 2025 increased by 23% to $7 million, with a gross margin of 30.3%, up 7% sequentially from the first quarter of 2025 [2][9] - Net cash used in operating activities decreased by 54% to $2 million in the second quarter of 2025 compared to $4.3 million in the first quarter of 2025 [2][8] Cash Position - As of June 30, 2025, the company reported $15.7 million in cash, cash equivalents, and restricted cash, up from $12.3 million as of March 31, 2025 [2][10] - The company leverages its trades payable to finance operations, enhancing its cash position and lowering its cost of capital [10] Strategic Collaborations - Entered into a major collaboration with a $3 billion mixed-use smart city project in Miami, expected to supply over 500,000 units of its advanced smart home technologies [2][5] - Announced a sales and marketing collaboration with Parrot Uncle, a leading ceiling fan manufacturer, to jointly market SKYX's technologies [5] Product Development - Announced a surge in demand for its new patented all-in-one smart turbo heater and ceiling fan, targeting a multi-billion-dollar market [3][5] - The company has secured additional equity through preferred stock investments totaling approximately $15 million, indicating strong confidence from insiders [11] Market Expansion - Collaborating with major retailers like Home Depot and Wayfair to expand product offerings in both retail and professional segments [5][16] - The company is focused on growing its market penetration in the U.S. and Canada through its e-commerce platform of 60 websites [5][17] Safety and Standardization - The safety code standardization team is making progress with significant support from industry leaders, aiming for mandatory safety standards for its technologies [13] - The company believes its products can significantly reduce risks such as fires and electrocutions, potentially saving insurance companies billions annually [13]