SKYX Platforms Corp
For the period ended Jun 30, 2024. Filed Aug 12, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 12, 2024
SKYX$0.73+6.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-14.
0001493152-24-019244
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-12.
0001493152-24-031279
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 68 previous paragraphs and 65 current paragraphs.
41 unchanged; 18 reworded; 6 added; 9 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 7 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (6)
Current report
In connection with the acquisition, the Company engaged in private placements of its securities during the first quarter of 2023, pursuant to which the Company issued and sold (i) subordinated secured convertible promissory notes in the aggregate principal amount of $10.35 million and (ii) warrants to purchase an aggregate of up to 1,391,667 shares of the Company’s common stock. The proceeds were used to fund the cash component of the Belami acquisition and to pay certain transaction expenses in connection with the acquisition and the private placements.
Current report
Sales and Marketing Expenses
Current report
The decrease in gain on extinguishment of debt is due to a non-recurring gain on extinguishment of debt which occurred during the second quarter of 2023.
Current report
As common with companies having a similar cash conversion cycle as ours, when sales are converted into cash rapidly, often referred to as the “Dell Working Capital Model”, we leverage our trades payable to finance our operations to lower our cost of capital, and accordingly, we may have negative working capital. This negative working capital is partly inherent to the relatively quick turnaround of finished goods inventory, quicker collection of accounts receivables, and longer payment cycle of trades payable. Our accounts receivable, inventory, net of trades payable, amounted to $(4.9) million and $(4.8) million as of June 30 and March 31, 2024, respectively.
Current report
Please see below a summary of the primary components of our cash used in or provided by operating investing and financing activities during the six-month period ended June 30, 2024
Current report
The changes in working capital, net are primarily attributable to timing differences in accounts receivable, accounts payable and deferred revenues.
Removed paragraphs (9)
Previous report
Selling and Marketing Expenses
Previous report
Three-months period ended March 31, 2024:
Previous report
We had $19.8 million in cash, cash equivalents, and restricted cash as of March 31, 2024.
Previous report
We used $6.1 million in our operating activities which consists of a net loss of $9.7 million adjusted for the following:
Previous report
We generated $3.6 million in financing activities which were primarily related to proceeds we generated from the issuance of shares of our common stock.
Previous report
Three-months period ended March 31, 2023:
Previous report
We had $23.1 million in cash, cash equivalents, restricted cash and marketable debt securities as of March 31, 2023.
Previous report
We used $4.1 million in our operating activities which consists of a net loss of $8 million adjusted for the following:
Previous report
We generated $10.3 million in financing activities which were primarily related to proceeds we generated from the issuance of convertible promissory notes.
Reworded paragraphs (18)
Previous wording
The following discussion and analysis should be read in conjunction with the unaudited consolidated financial statements and related notes included elsewhere in this Form 10-Q and our audited financial statements and related notes thereto for the year ended December 31, 2023 included in our Annual Report on Form 10-K for the year ended December 31, 2023. This discussion and analysis and other parts of this Form 10-Q contain forward-looking statements based upon current beliefs, plans and expectations that involve risks, uncertainties and assumptions, such as statements regarding our plans, objectives, strategy, expectations, outlook, intentions and projections. Our actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors, including those set forth in “Part I. Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2023 and in other filings with the Securities and Exchange Commission (the “SEC”). Please also see the section entitled “Cautionary Note Regarding Forward-Looking Statements” contained in this Form 10-Q.
Current wording
The following discussion and analysis should be read in conjunction with the unaudited consolidated financial statements and related notes included elsewhere in this Form 10-Q and our audited financial statements and related notes thereto for the year ended December 31, 2023 included in our Annual Report on Form 10-K for the year ended December 31, 2023. This discussion and analysis and other parts of this Form 10-Q contain forward-looking statements based upon current beliefs, plans and expectations that involve risks, uncertainties and assumptions, such as statements regarding our plans, objectives, strategy, expectations, outlook, intentions and projections. Our actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors, including those set forth in “Part I. Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2023, in this Form 10-Q, and in other filings with the Securities and Exchange Commission (the “SEC”). Please also see the section entitled “Cautionary Note Regarding Forward-Looking Statements” contained in this Form 10-Q.
Previous wording
We have a series of advanced-safe-smart platform technologies. Our first- and second-generation technologies enable light fixtures, ceiling fans and other electrically wired products to be installed safely and plugged in to a ceiling’s electrical outlet box within seconds, and without the need to touch hazardous wires. The plug and play technology method is a universal power-plug device that has a matching receptacle that is simply connected to the electrical outlet box on the ceiling, enabling a safe and quick plug and play installation of light fixtures and ceiling fans in just seconds. The plug and play power-plug technology eliminates the need to touch hazardous electrical wires while installing light fixtures, ceiling fans and other hard wired electrical products. In recent years, we have expanded the capabilities of our power-plug product to include advanced-safe and quick universal installation methods, as well as advanced-smart capabilities. The smart features include control of light fixtures and ceiling fans by the SkyHome App, through WIFI, BLE and voice control. It allows scheduling, energy savings eco mode, dimming, back-up emergency light, night light, light color changing and much more. Our third-generation technology is an all-in-one safe and smart-advanced platform that is designed to enhance all-around safety and lifestyle of homes and other buildings. Our products are designed to improve all around home and building safety and lifestyle. We are continuing to refine our products and began manufacturing certain advanced and smart products in 2023 and expect additional products, including the third-generation smart-advanced platform to be available in 2024. We hold over 96 U.S. and global patents and patent applications and have received a variety of final electrical code approvals, including UL, United Laboratories of Canada (cUL) and Conformité Européenne (CE), and 2017 and 2020 inclusion in the NEC Code Book.
Current wording
We have a series of advanced-safe-smart platform technologies. Our first and second--generation technologies enable light fixtures, ceiling fans and other electrically wired products to be installed safely and plugged in to a ceiling’s electrical outlet box within seconds, and without the need to touch hazardous wires. The plug and play technology method is a universal power-plug device that has a matching receptacle that is simply connected to the electrical outlet box on the ceiling, enabling a safe and quick plug and play installation of light fixtures and ceiling fans in just seconds. The plug and play power-plug technology eliminates the need of touching hazardous electrical wires while installing light fixtures, ceiling fans and other hard wired electrical products. In recent years, we have expanded the capabilities of our power-plug product to include advanced-safe and quick universal installation methods, as well as advanced-smart capabilities. The smart features include control of light fixtures and ceiling fans by the SkyHome App, through WIFI, Bluetooth Low Energy and voice control. It allows scheduling, energy savings eco mode, dimming, back-up emergency light, night light, light color changing and much more. Our third-generation technology is an all-in-one safe and smart-advanced platform that is designed to enhance all-around safety and lifestyle of homes and other buildings. Our products are designed to improve all around home and building safety and lifestyle. We are continuing to refine our products and began manufacturing certain advanced and smart products in 2023 and expect additional products, including the third-generation smart-advanced platform to be available in 2024. We expect to manufacture the additional product offerings in the second half of 2024. We hold over 97 U.S. and global patents and patent applications and have received a variety of final electrical code approvals, including UL, United Laboratories of Canada (cUL) and Conformité Européenne (CE), and 2017 and 2020 inclusion in the NEC Code Book.
Previous wording
Inflation and related risk of recession has continued to impact operations during 2023 and 2024. Inflationary factors, such as increases in interest rates, supply and overhead costs and transportation costs, may adversely affect our operating results, and we may not be able to offset increased costs with increased sales price per unit, particularly as we work toward commercial manufacturing of our products. Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, we may experience some effect in the near future (especially if inflation rates continue to rise). In addition, we may be negatively impacted because of supply chain constraints, consequences associated with government regulations, ongoing and potential geopolitical conflicts, instability in the global banking system, employee availability and wage increases.
Current wording
Inflation and related risk of recession increased during 2022 and have continued to impact operations during 2023 and 2024. Inflationary factors, such as increases in interest rates, supply and overhead costs and transportation costs, may adversely affect our operating results, and we may not be able to offset increased costs with increased sales price per unit, particularly as we work toward commercial manufacturing of our products. Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, we may experience some effect in the near future (especially if inflation rates continue to rise). In addition, we may be negatively impacted because of supply chain constraints, consequences associated with government regulations, ongoing and potential geopolitical conflicts, instability in the global banking system, employee availability and wage increases.
Previous wording
During April 2023, we completed the previously announced acquisition of all the issued and outstanding shares of Belami, a strategic e-commerce lighting and home décor conglomerate. The Company paid cash and issued an aggregate of 3,776,706 shares of common stock as consideration for the acquisition (including shares issued in April 2024). The Company expects that Belami will serve as a marketing and growth platform and should provide several distribution channels, including to retail customers, builders, and professionals.
Current wording
During April 2023, we completed the previously announced acquisition of all the issued and outstanding shares of Belami, a strategic e-commerce lighting and home décor conglomerate. The Company paid cash and issued an aggregate of 3,776,706 shares of our common stock as consideration for the acquisition. The Company expects that Belami will serve as a marketing and growth platform and should provide several distribution channels, including to retail customers, builders, and professionals.
Previous wording
Comparison of the Three Months Ended March 31, 2024 and 2023
Current wording
Comparison of the Three and Six months Ended June 30, 2024, and 2023
Previous wording
The increase in revenues during the three-month ended March 31, 2024, when compared to the prior year period, is primarily due to revenues from products marketed by Belami which was acquired in April 2023.
Current wording
The increase in revenues during the 2024 interim periods is primarily due to revenues from products marketed by Belami which was acquired on April 28, 2023.
Previous wording
We believe that revenues will be higher in 2024 than in 2023, primarily resulting from revenues from Belami, and the sale of our advanced-safe-smart products.
Current wording
We believe that revenues will be higher in 2024 than in 2023, primarily resulting from revenues from Belami, which was acquired in April 2023 and the sale of our advanced and smart products.
Previous wording
The cost of revenues consists primarily of costs associated with selling the products marketed by Belami. The increase in cost of revenues during the three-month periods ended March 31, 2024 when compared to the prior year period, is primarily due to costs associated with revenues from products marketed by Belami which was acquired on April 28, 2023.
Current wording
The cost of revenue consists primarily of costs associated with selling the products marketed by Belami. The increase in cost of revenues during the 2024 interim periods is commensurate with the increase in revenues and is primarily due to costs associated with revenues from products marketed by Belami which was acquired on April 28, 2023.
Previous wording
Selling and marketing expenses consist primarily of sales and marketing compensation as well as sales and marketing programs.
Current wording
Sales and marketing expenses consist primarily of sales and marketing compensation as well as sales and marketing programs.
Previous wording
The increase in selling and marketing expenses is primarily due to such expenses increasing following the acquisition of Belami aggregating $4.4 million during the three-month period ended March 31, 2024.
Current wording
The increase in sales and marketing expenses during the 2024 interim periods is primarily due to such expenses increasing following the acquisition of Belami on April 28, 2023
Previous wording
The increase in general, and administrative expenses during the three months ended March 31, 2024, when compared to the prior year period was primarily due to the following:
Current wording
The decrease in general, and administrative expenses during the 2024 interim periods was primarily due to the following:
Previous wording
We believe that our operating expenses will be higher during 2024 when compared to 2023 as we continue to invest to support our anticipated growth and now includes such expenses related to Belami’s operations following its acquisition.
Current wording
We believe that our operating expenses will be higher during 2024 when compared to 2023 as we continue to invest to support our anticipated growth which now includes such expenses related to Belami’s operations following its acquisition.
Previous wording
The increase in interest expense in the three-month periods ended March 31, 2024, when compared to the prior year period resulted primarily from interest charges related to increased interest-bearing weighted-average debt in the current period when compared to the prior year period.
Current wording
The decrease in interest expense during the interim 2024 periods resulted primarily from interest charges related to increased interest-bearing weighted-average debt in the current periods when compared to the prior year periods.
Previous wording
As of March 31, 2024 and 2023, we had $19.7 million and $23.1 million in cash, cash equivalents, and restricted cash respectively.
Current wording
As of June 30, 2024, and 2023, we had $15.6 million and $23.7 million in cash, cash equivalents, and restricted cash, respectively.
Previous wording
We have raised additional funds through the sale of our common stock for gross proceeds of $3.6 million and placements and offerings during the three-month period ended March 31, 2024.
Current wording
We have raised additional funds through the sale of our common stock for gross proceeds of $4.4 million and placements and offerings during the six-month period ended June 30, 2024.
Previous wording
These offerings included shares sold pursuant to our ATM offering program which provides us with additional access to capital, as needed, subject to market conditions. During the three months ended March 31, 2024, we issued 2,733,361 shares of common stock under such a program for net proceeds of $ 3,582,610, net of brokerage fees of approximately $ 73,145. From inception through March 31, 2024, we issued 6,593,193 shares of common stock under such a program for net proceeds of $ 12,751,281, net of brokerage fees of approximately $ 260,230. As of March 31, 2024, the remaining amount to be used under the ATM offering program is $6.6 million.
Current wording
These offerings included shares sold pursuant to our ATM offering program which provides us with additional access to capital, as needed, subject to market conditions. During the three months ended June 30, 2024, we issued 801,706 shares of common stock under such a program for net proceeds of $747,682, net of brokerage fees of approximately $15,281. From inception through June 30, 2024, we issued 7,894,899 shares of common stock under such a program for net proceeds of $13,620,152, net of brokerage fees and legal fees of $619,415. As of June 30, 2024, the remaining amount to be used under the ATM offering program is $5.8 million.
Previous wording
We owe approximately $11.5 million under fixed rate obligations as of March 31, 2024. In addition, we owe GE certain minimum royalty payments under a license agreement which amounted to $3.7 million as of March 31, 2024.
Current wording
We owe approximately $16.9 million under fixed rate obligations as of June 30, 2024. In addition, we owe GE certain minimum royalty payments under a license agreement and other accrued expenses which amounted to $2.5 million as of June 30, 2024.
Previous wording
The Company’s liquidity sources include $ 19.8 million in cash and cash equivalents, including restricted cash of $5.6 million, and $ 1.2 million of working capital at March 31, 2024. However, the Company has a history of recurring operating losses and its net cash used in operating activities amounted to $6.2 million and $4.1 million during the three months ended March 31, 2024 and March 31, 2023, respectively. The Company has also generated net cash provided by financing activities of $3.6 million and $10.3 million during the three months ended March 31, 2024 and 2023, respectively. Accordingly, the Company’s management cannot ascertain that there is no substantial doubt that it will be able to meet its obligations as they become due within one year after the date that its financial statements are issued.
Current wording
The Company’s liquidity sources include $ 15.6 million in cash and cash equivalents, including restricted cash of $4.9 million, and $ 6.5 million of working capital deficit as of June 30, 2024. The Company has a history of recurring operating losses and its net cash used in operating activities amounted to $10.4 million and $6.6 million during the six months ended June 30, 2024, and 2023, respectively. The Company has also generated net cash provided by financing activities of $3.8 million and $17.6 million during the six months ended June 30, 2024 and 2023, respectively. Accordingly, the Company’s management cannot ascertain that there is no substantial doubt that it will be able to meet its obligations as they become due within one year after the date that its financial statements are issued.