SKYX Platforms (US:SKYX)2025-11-12 21:11Financial Performance - Revenue for the three months ended September 30, 2025, was $23,891,537, a 7.8% increase from $22,168,919 in the same period of 2024[15] - Net loss for the three months ended September 30, 2025, was $7,615,926, compared to a net loss of $8,621,306 for the same period in 2024, reflecting a 11.7% improvement[15] - The company reported a net loss attributed to common stockholders of $26,270,357 for the nine months ended September 30, 2025, compared to $25,760,456 for the same period in 2024[15] - For the nine months ended September 30, 2025, the net loss was $25,494,983, compared to a net loss of $25,760,456 for the same period in 2024[20] - The net loss for the nine months ended September 30, 2025, was $25.49 million, slightly improved from a net loss of $25.76 million in 2024[77] Assets and Liabilities - Total current assets decreased to $16,438,196 as of September 30, 2025, down from $20,374,450 at the end of 2024, a decline of 19.5%[13] - Total assets decreased to $58,414,184 as of September 30, 2025, compared to $65,887,047 at the end of 2024, a reduction of 11.5%[13] - Total liabilities increased to $57,253,277 as of September 30, 2025, compared to $56,833,619 at the end of 2024, an increase of 0.7%[13] - Cash and cash equivalents decreased to $7,829,739 as of September 30, 2025, down from $12,639,441 at the end of 2024, a decline of 38.5%[13] - Total stockholders' equity (deficit) was reported at $(3,839,093) as of September 30, 2025, compared to $3,834,570 in 2024[20] Operating Expenses - Operating expenses for the nine months ended September 30, 2025, totaled $89,064,886, up from $85,321,973 in the same period of 2024, an increase of 3.1%[15] - Total operating expenses for the nine months ended September 30, 2025, were $89,064,886, up from $85,321,970 in 2024, indicating a rise of about 3.1%[77] - The company reported non-cash equity-based compensation expense of $10,027,416 for the nine months ended September 30, 2025, compared to $9,035,220 in 2024, reflecting an increase of approximately 11%[20] Cash Flow - The company generated net cash used in operating activities of $11,296,274 for the nine months ended September 30, 2025, compared to $12,951,448 in 2024, indicating a reduction of approximately 12.8%[20] - Cash paid for operating lease liabilities was $1,727,917 for the nine months ended September 30, 2025, compared to $1,636,374 for the same period in 2024[53] - The company generated $6.54 million in net cash from financing activities during the nine months ended September 30, 2025, compared to $4.11 million in 2024, representing a 59.3% increase[20] Stock and Equity - The weighted average number of common shares outstanding for the three months ended September 30, 2025, was 112,021,945, compared to 103,507,590 for the same period in 2024[15] - The Company issued 5,180,254 shares of common stock for services provided, valued at $10,027,416, averaging $1.94 per share during the nine months ended September 30, 2025[59] - The Company recognized compensation expenses of $8,038,763 related to restricted stock units (RSUs) during the nine months ended September 30, 2025, compared to $7,168,301 in the same period in 2024[67] - The number of outstanding stock options increased to 33,003,655 as of September 30, 2025, with a weighted average exercise price of $6.54[62] Challenges and Future Outlook - The company anticipates ongoing challenges related to market conditions, including supply chain constraints and potential economic downturns[10] - The company intends to mitigate liquidity concerns by increasing revenues and margins from products sold to large retailers and internet portals[25] - The company is focusing on expanding its operations and integrating new lines of business related to smart products and technologies[10] Inventory and Accounts - The Company’s allowance for doubtful accounts increased to $22,668 as of September 30, 2025, from $12,147 as of December 31, 2024[33] - The allowance for sales returns decreased to $107,502 as of September 30, 2025, from $242,515 as of December 31, 2024[34] - Total inventory as of September 30, 2025, was $3,716,758, a slight decrease from $3,785,346 as of December 31, 2024[37] - Total accounts payable and accrued expenses increased to $15.73 million as of September 30, 2025, compared to $14.28 million as of December 31, 2024, reflecting a growth of approximately 10.2%[56] Debt and Obligations - The total debt as of September 30, 2025, was $18,993,888, a decrease from $20,107,705 as of December 31, 2024[48] - Interest expense for the nine months ended September 30, 2025, was $1,195,591, down from $2,061,236 for the same period in 2024[48] - The Company owes $1.4 million to General Electric (GE) as of September 30, 2025, with payments of $0.1 million due in 2025 and $1.3 million in 2026[55]