[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]

Financial Data and Key Metrics Changes - The company reported a revenue increase of $3,400,000, representing a significant growth compared to the prior quarter [3] - Gross profit increased by 23%, indicating strong financial progress [3] - Net cash used in operating activities decreased by 54%, primarily due to favorable payables and improved gross profit [3][21] - Cash and cash equivalents rose to $15,700,000 as of June 30, compared to $12,300,000 as of March 31, 2025 [20] - Adjusted EBITDA loss decreased to $2,600,000 or $0.02 per share, down from $3,600,000 or $0.04 per share in the previous quarter [22] Business Line Data and Key Metrics Changes - The company has over 100 patents and pending applications, with 45 issued patents, which are crucial for future growth [5][9] - Collaboration with Home Depot continues to expand, with a variety of advanced smart products being offered [5] - The company expects its products to be in over 40,000 homes in the U.S. and Canada by the end of 2023 [6] Market Data and Key Metrics Changes - The company reported a record second quarter revenue of $23,100,000, a 15% increase compared to $20,100,000 in the same quarter of the previous year [19] - Market penetration in the U.S. and Canadian markets has shown consistent growth over six comparable quarters [19] Company Strategy and Development Direction - The company is focusing on safety, a massive total addressable market (TAM), and global applications as core factors driving future growth [5][9] - The collaboration on the Miami Smart City project is seen as a significant milestone, expected to redefine urban living and enhance the company's market presence [12][14] - The company is working on launching new products, including an all-in-one advanced smart heater, to boost revenues and gross margins [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving cash flow positive status in 2025, supported by reduced cash expenses and anticipated product launches [21][28] - There is a strong belief that mandatory safety standardizations will be implemented, which could serve as a catalyst for growth [31][32] Other Important Information - The company has made significant progress in safety code standardization, receiving support from government safety organizations [10][11] - A prominent hire from Amazon is expected to enhance the e-commerce platform and drive growth [36] Q&A Session Summary Question: Path to cash flow breakeven - Management highlighted reduced cash expenses and upcoming product launches as key factors to achieve cash flow breakeven by the end of the year [26][28] Question: Updates on mandatory standardization of codes - Management provided insights into ongoing efforts with government organizations to expedite the process of mandatory safety standardizations [30][32] Question: Impact of e-commerce platform changes - Management discussed the hiring of a prominent leader from Amazon to enhance the e-commerce strategy and drive growth [36] Question: Partnerships related to ceiling heaters and fans - Management confirmed ongoing collaborations with big box retailers and developers to expand market reach for the new products [44] Question: Smart City project as a proof point for other developers - Management acknowledged increased interest and recognition from other developers following the Smart City announcement [48]

Core Viewpoint - SKYX Platforms Corp. is set to provide corporate updates, including its second quarter 2025 overview and financial results, during a conference call scheduled for August 12, 2025, at 4:30 PM Eastern Time [2][3]. Group 1: Company Overview - SKYX Platforms Corp. operates as a disruptive advanced and smart home platform technology company, holding over 100 issued and pending patents globally [2][4]. - The company has a portfolio of more than 60 lighting and home décor websites, catering to both retail and commercial segments [4]. - SKYX aims to enhance safety and lifestyle in homes and buildings through its high-quality and user-friendly technologies [4]. Group 2: Conference Call Details - The conference call will take place on August 12, 2025, at 4:30 PM Eastern Time, with dial-in options provided for U.S./Canada and international participants [3]. - A playback of the call will be available until September 12, 2025, with specific replay dial-in numbers and a pin number for access [4].

[FORM 8-K Filing Information](index=1&type=section&id=FORM%208-K%20Filing%20Information) This section details the registrant's identification, filing specifics, and the regulatory context of the Form 8-K submission [Registrant and Filing Details](index=1&type=section&id=Registrant%20and%20Filing%20Details) This section provides the fundamental identification details of the registrant, SKYX PLATFORMS CORP., and the administrative specifics of the Form 8-K filing, including the date of the earliest reported event - **SKYX PLATFORMS CORP.** (d/b/a Sky Technologies) is the registrant[2](index=2&type=chunk) - The earliest event reported occurred on **July 31, 2025**[2](index=2&type=chunk) - Commission File Number is **001-41276**[2](index=2&type=chunk) - Incorporated in **Florida**[2](index=2&type=chunk) - Principal executive offices are located at **2855 W. McNab Road, Pompano Beach, Florida 33069**[2](index=2&type=chunk) [Filing Intent and Status](index=1&type=section&id=Filing%20Intent%20and%20Status) This part clarifies the specific regulatory provisions under which the Form 8-K is filed and confirms the registrant's status regarding the emerging growth company election - The Form 8-K filing does not satisfy obligations under Rule 425, Rule 14a-12, Rule 14d-2(b), or Rule 13e-4(c)[3](index=3&type=chunk) - The registrant is **not an emerging growth company**[4](index=4&type=chunk) [Item 2.02 Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) This section reports preliminary unaudited financial results for the second quarter of 2025 and provides important disclaimers regarding their nature [Preliminary Financial Results Announcement](index=2&type=section&id=Preliminary%20Financial%20Results%20Announcement) SKYX Platforms Corp. announced preliminary unaudited revenue for the second quarter of 2025 and provided a business update through a press release, which is furnished as an exhibit to this report - SKYX Platforms Corp. announced preliminary unaudited revenue for the three months ended **June 30, 2025**, and a business update via a press release on **July 31, 2025**[5](index=5&type=chunk) - The press release is furnished as **Exhibit 99.1** to this Current Report on Form 8-K[5](index=5&type=chunk) [Disclaimer Regarding Preliminary Results](index=2&type=section&id=Disclaimer%20Regarding%20Preliminary%20Results) The company emphasizes that the announced financial results are preliminary estimates, subject to change, and not a complete financial statement, pending audit completion It also clarifies the legal implications of furnishing this information under SEC rules - Preliminary financial results are **unaudited estimates** and not a comprehensive statement for the quarter ended **June 30, 2025**[6](index=6&type=chunk) - Results are subject to material adjustment pending completion of financial closing procedures, final adjustments, and audit review[6](index=6&type=chunk) - The exhibit and information are 'furnished' and not 'filed' under Section 18 of the Securities Exchange Act of 1934, limiting liability and incorporation by reference[7](index=7&type=chunk) [Item 8.01 Other Events](index=2&type=section&id=Item%208.01%20Other%20Events) This section formally incorporates by reference the disclosures detailed under Item 2.02 of this Current Report on Form 8-K [Incorporation by Reference](index=2&type=section&id=Incorporation%20by%20Reference) This section formally incorporates by reference the disclosures detailed under Item 2.02 of this Current Report on Form 8-K - The disclosure from **Item 2.02** of this Current Report on Form 8-K is incorporated by reference into this Item 8.01[8](index=8&type=chunk) [Forward-looking Statements](index=2&type=section&id=Forward-looking%20Statements) This section provides cautionary disclosure regarding statements about future events, outlining their nature and associated risks and uncertainties [Nature and Risks of Forward-looking Statements](index=2&type=section&id=Nature%20and%20Risks%20of%20Forward-looking%20Statements) This section provides a standard cautionary disclosure regarding statements about future events, defining them by specific terminology and outlining various risks and uncertainties that could cause actual outcomes to differ materially from expectations - Forward-looking statements are not historical facts, identified by terms like 'aim,' 'anticipate,' 'believe,' 'expect,' 'plan,' or 'will'[9](index=9&type=chunk) - These statements are subject to risks including market acceptance, adoption by states/countries, accuracy of market estimates, and successful product commercialization[9](index=9&type=chunk) - Readers should not unduly rely on these statements, and the Company disclaims any obligation to update or revise them, except as legally required[9](index=9&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=2&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section provides a comprehensive list of all documents filed as exhibits to the Current Report on Form 8-K [List of Exhibits](index=2&type=section&id=List%20of%20Exhibits) This section enumerates the documents filed as exhibits to the Form 8-K, including a press release and the interactive data file Exhibits to Form 8-K | Exhibit Number | Description | | :------------- | :---------- | | 99.1 | Press Release, dated July 31, 2025 | | 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | [SIGNATURES](index=3&type=section&id=SIGNATURES) This section provides the formal authorization and signature details for the Current Report on Form 8-K [Authorized Signature](index=3&type=section&id=Authorized%20Signature) The report is formally signed on behalf of SKYX PLATFORMS CORP. by its Co-Chief Executive Officer, Leonard J. Sokolow, confirming compliance with the requirements of the Securities Exchange Act of 1934 - The report is signed by **Leonard J. Sokolow**, Co-Chief Executive Officer of SKYX PLATFORMS CORP[13](index=13&type=chunk)[14](index=14&type=chunk) - The signature date is **July 31, 2025**[14](index=14&type=chunk)

Core Insights - SKYX Platforms Corp. has reported consistent revenue growth for six consecutive quarters from Q1 2024 to Q2 2025, with Q2 2025 revenues reaching $23.1 million, up from $20.1 million in Q1 2025 [1][2][5] - The company anticipates its products will be present in 40,000 units/homes in the U.S. and Canada by the end of Q2 2025, leveraging both retail and professional segments [1][2] - SKYX is focused on enhancing its cash position through its e-commerce platform, which includes 60 websites, and support from strategic investors [1][2] - Upcoming product launches, such as smart heater fans, are expected to contribute to cash flow positivity in 2025 [1][2] - The company employs a "Razor and Blades" business model, which aims to create recurring revenue opportunities through product interchangeability, upgrades, monitoring, and subscriptions [1][2] Financial Performance - Revenue figures for SKYX from Q1 2024 to Q2 2025 are as follows: $19 million (Q1 2024), $21.4 million (Q2 2024), $22.2 million (Q3 2024), $23.7 million (Q4 2024), $20.1 million (Q1 2025), and $23.1 million (Q2 2025) [1][5] - The company has achieved record pre-audited financial results for Q2 2025, indicating strong growth momentum [1][2] Company Overview - SKYX Platforms Corp. is a technology company focused on smart home solutions, holding over 97 issued and pending patents globally [3] - The company operates over 60 lighting and home décor websites, targeting both retail and commercial segments [3] - SKYX aims to enhance safety and lifestyle in homes and buildings, positioning its products as essential in every room [3]

Core Insights - SKYX Platforms Corp. has entered a sales and marketing collaboration agreement with Parrot Uncle to jointly market innovative smart home technologies, including a patented all-in-one smart turbo heater and ceiling fan [1][2][6] - The ceiling fan and space heater market is a multi-billion-dollar industry, with tens of millions of units sold annually in the U.S. alone, indicating a significant market opportunity for the new product [2][4] - SKYX plans to launch two versions of the combined ceiling fan and heater product in 6 to 8 colors, targeting both residential and commercial markets, with production already underway [3][4] Company Overview - SKYX Platforms Corp. is focused on making homes and buildings smart, safe, and advanced, holding over 100 patents globally and managing more than 60 lighting and home décor websites [7] - The company emphasizes high quality and ease of use in its products, aiming to enhance safety and lifestyle in homes and buildings [7] Market Potential - The integration of a ceiling fan with a built-in heater addresses a substantial market opportunity across all four seasons, reinforcing the potential for significant sales growth [4] - The successful launch of this innovative product line is seen as a critical milestone for SKYX on its path to achieving cash-flow positive operations by 2025 [4][6]

Core Insights - SKYX Platforms Corp. has announced the issuance of 8 new patents, bringing its total to over 100 issued and pending patents globally, with 45 of these being issued patents [1][3][4] - The company's patent portfolio includes advanced plug-and-play smart home platforms, AI capabilities, home safety sensors, and various lighting solutions [2][3] - SKYX's Total Addressable Market (TAM) exceeds $500 billion, highlighting the significant value created by its robust patent portfolio [3] Patent Portfolio - The newly issued patents span multiple countries including the U.S., India, Japan, U.K., France, Germany, Italy, and Spain [1] - The patents cover technologies related to safety, smart home, AI, electrical, lighting, and ceiling fan industries [3][4] Company Vision and Mission - The company aims to establish smart, safe, and advanced homes and buildings as the new standard [4] - SKYX emphasizes high quality and ease of use in its technologies, which are designed to enhance safety and lifestyle in homes and buildings [4]

Core Insights - SKYX Platforms Corp. will be officially added to the Russell 2000 index on June 27, 2025, marking a significant milestone for the company [2] - The company plans to deploy over 500,000 units of its advanced Plug & Play smart home technologies in Miami's $3 billion Urban Smart Home City project [2] - SKYX has received substantial financial backing from U.S. and global manufacturers to support its product deployment [2] Market Acceptance, Progress and Recent Events - The Urban Smart Home City project will feature over 5,700 condos and apartments, retail space, parks, and a new Tri-Rail Station [2] - The project is led by SG Holdings, a joint venture known for transformative urban developments [2] - SKYX's Safety Code Standardization Team is gaining support from a key government safety organization to establish mandatory safety standards for its technologies [2][14] Product Launch and Financial Performance - The company anticipates a surge in demand for its All-In-One Smart Turbo Heater & Ceiling Fan, with a Q3 Winter launch expected to drive cash-flow positivity in 2025 [2] - SKYX generated record revenues of $20.1 million in Q1 2025, up from $18.9 million in Q1 2024 [2] - The company reported a reduction in General and Administrative expenses by 17% to $6.6 million in Q1 2025 [6] Strategic Partnerships and Market Expansion - SKYX has formed a strategic manufacturing partnership with Profab Electronics to enhance its supply chain [5] - The company collaborates with major retailers like Home Depot and Wayfair to expand its market presence [7] - A partnership with JIT Electrical Supply will further extend SKYX's reach in the electrical and lighting markets [7] Safety and Insurance Implications - SKYX believes its products can save insurance companies billions by reducing risks associated with fires and electrocutions [7][14] - The company is focused on a "Razor & Blades" business model, offering a range of smart home products that promote recurring revenue [7] Total Addressable Market - The total addressable market for SKYX's products in the U.S. is estimated at $500 billion, with significant opportunities in both retail and professional segments [7]

Core Insights - SKYX Platforms Corp. is a disruptive smart home technology company with over 97 patents and a mission to enhance safety and intelligence in homes and buildings [1] - The company will be added to the Russell 2000 index on June 27, 2025, indicating increased market recognition [2] - SKYX is involved in a $3 billion Urban Smart Home City project in Miami, deploying over 500,000 units of its smart home technologies [2] Market Acceptance, Progress and Recent Events - The Urban Smart Home City project will feature over 5,700 condos and apartments, retail space, parks, and a new Tri-Rail Station [2] - SKYX has secured financial backing from U.S. and global manufacturers for product deployment [2] - The company anticipates a surge in demand for its All-In-One Smart Turbo Heater & Ceiling Fan, with a Q3 launch expected to support cash-flow positivity in 2025 [2][4] Financial Performance - SKYX reported record revenues of $20.1 million in Q1 2025, up from $18.9 million in Q1 2024 [2] - The company has $12.3 million in cash as of March 31, 2024, down from $15.5 million a year earlier [2] - General and Administrative expenses decreased by 17% to $6.6 million in Q1 2025 [2] Strategic Partnerships and Collaborations - SKYX has formed a strategic manufacturing partnership with Profab Electronics to enhance its supply chain [4] - Collaborations with major retailers like Home Depot and Wayfair will expand the distribution of its smart products [4] - The company is working with leading lighting manufacturers and prefabricated home builders to integrate its technologies into new developments [4][5] Safety and Standardization Efforts - SKYX's Safety Code Standardization Team is gaining support from a prominent leader in a government safety organization [9] - The team aims to establish mandatory safety standards for its ceiling outlet technology, which could lead to significant insurance savings [9] - The company believes its products can save insurance companies billions by reducing risks associated with electrical fires and accidents [9] Market Potential - The total addressable market for SKYX in the U.S. is estimated at $500 billion, with over 4.2 billion ceiling applications [4] - The company is focused on a "Razor & Blades" business model, offering a range of smart plug & play products [4] - SKYX's e-commerce platform consists of over 60 websites aimed at enhancing market penetration [4]