SKYX Platforms (US:SKYX)2024-08-12 20:20Financial Performance - Revenue for Q2 2024 reached $21,446,148, a 43% increase compared to $14,984,055 in Q2 2023[6] - Gross profit for the six months ended June 30, 2024, was $12,154,677, compared to $4,703,969 for the same period in 2023, indicating a significant improvement[6] - The net loss for Q2 2024 was $(7,462,949), an improvement from $(12,263,562) in Q2 2023[6] - For the six months ended June 30, 2024, the net loss was $17,139,150, an improvement from a net loss of $20,228,484 for the same period in 2023, representing a 15% reduction in losses[9] - The company reported a basic and diluted net loss per share of $0.08 for Q2 2024, compared to $0.14 for Q2 2023[6] Assets and Liabilities - Total assets decreased from $76,341,203 on December 31, 2023, to $69,164,575 on June 30, 2024, representing a decline of approximately 9.4%[5] - Current liabilities increased from $24,192,550 to $28,089,313, an increase of about 16.5%[5] - Total liabilities decreased slightly from $60,119,193 to $59,680,485, a reduction of approximately 0.7%[5] - Cash and cash equivalents decreased from $16,810,983 to $10,684,989, a decline of about 36.5%[5] - Total stockholders' equity decreased to $9,484,090 as of June 30, 2024, down from $20,983,627 a year earlier[7] Inventory and Deferred Revenues - Inventory increased from $3,425,734 to $4,220,575, an increase of approximately 23.2%[5] - Deferred revenues increased from $1,475,519 to $2,072,123, an increase of approximately 40.4%[5] - Total inventory increased to $4,220,575 as of June 30, 2024, from $3,425,734 as of December 31, 2023[26] Cash Flow and Financing Activities - Net cash used in operating activities increased to $10,397,019 for the six months ended June 30, 2024, compared to $6,644,075 in the same period of 2023, indicating a 56% increase in cash outflow[9] - The company generated net cash provided by financing activities of $3,847,710 for the six months ended June 30, 2024, a significant decrease of 78% compared to $17,648,373 in the same period of 2023[13] - Cash paid for operating lease liabilities increased significantly to $1,021,684 in 2024 from $207,130 in 2023, representing a growth of approximately 392%[43] Stock and Equity - The company issued 801,706 shares of common stock in Q2 2024, compared to 2,984,308 shares in Q2 2023[7] - The weighted average number of common shares outstanding increased to 99,445,289 in Q2 2024 from 86,621,015 in Q2 2023[6] - The company issued 2,387,779 shares of common stock for services provided, valued at $6,070,935, during the six months ended June 30, 2024[47] Strategic Initiatives - The company is focusing on expanding its operations and integrating new lines of business, particularly in smart products and technologies[4] - The company has expanded its product offerings to include home lighting and furnishings from third parties since April 2023[12] - The company plans to mitigate liquidity issues by increasing revenues and margins from products sold to large retailers and through online channels[14] Debt and Obligations - The company has convertible notes totaling $15,592,408 as of June 30, 2024, compared to $11,525,000 as of December 31, 2023, reflecting a 35.5% increase[37] - The company expects future principal payments for its debt to total $21,948,854, with significant payments due in the next fiscal years[38] - The Company has a total minimum lease obligation of $14,133,630, with $2,315,810 due in the twelve months ending June 30, 2025[43] Expenses - Total expenses for Q2 2024 were $12,811,926, down from $16,946,752 in Q2 2023, reflecting a 24% reduction[6] - The company recorded depreciation expenses of $338,019 for the six months ended June 30, 2024, compared to $64,494 for the same period in 2023, indicating a significant increase in depreciation[33] - The Company recognized compensation expenses related to RSUs and RSAs of $6,070,935 for the six months ended June 30, 2024, compared to $10,638,534 for the same period in 2023, reflecting a decrease of approximately 43%[59] Risk Management - The company reported a significant reliance on a limited number of third-party manufacturers and suppliers, impacting production costs[4] - As of June 30, 2024, the allowance for doubtful accounts was $16,394, a decrease from $54,987 at the end of 2023, indicating improved credit risk management[23] - The company has deposits exceeding the amount insured by the FDIC, and it periodically evaluates the credit quality of the financial institutions holding these deposits[62]