SKYX Platforms Corp.

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 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 connections. The SkyHome App allows scheduling, energy saving-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 (the “Smart Sky Platform”) that is designed to enhance all-around safety and lifestyle of homes and other buildings. 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 2025. Our products are designed to improve all around home and building safety and lifestyle. We expect to manufacture the additional product offerings within the next six months. We hold 100 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 connections. The SkyHome App allows scheduling, energy saving-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 (the “Smart Sky Platform”) that is designed to enhance all-around safety and lifestyle of homes and other buildings. 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 2026. Our products are designed to improve all around home and building safety and lifestyle. We expect to manufacture the additional product offerings within the next three months. We hold 100 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

In March 2024 and as amended in June 2025, the Company and the Belami sellers entered into a letter agreement modifying certain obligations under the stock purchase agreement for the acquisition of Belami. In connection with the letter agreement, the Company issued convertible promissory notes to each of the sellers (the “Seller Note(s)”) in substitution of an aggregate of $3,117,408 in cash due to the sellers on the first anniversary of the closing of the Belami acquisition. Each seller received a Seller Note in an amount of $1,039,303 on the same date. In addition to other customary terms, the Seller Notes bear annual interest at 10%, with aggregate principal and interest monthly payments of $300,000 effective July 1, 2025 until fully paid in January 2026. The outstanding obligation can be converted by the sellers into shares of our common stock at any time at $3 per share of our common stock.

Current wording

In March 2024 and as amended in June 2025, the Company and the Belami sellers entered into a letter agreement modifying certain obligations under the stock purchase agreement for the acquisition of Belami. In connection with the letter agreement, the Company issued convertible promissory notes to each of the sellers (the “Seller Note(s)”) in substitution of an aggregate of $3,117,909 initially due to the sellers in April 2024. The Seller Notes bear annual interest at 10%, with aggregate principal and interest monthly payments of $300,000 effective July 1, 2025 until fully paid in January 2026. The outstanding obligation can be converted by the holders into shares of our common stock at any time at $3 per share of our common stock.

Previous wording

Comparison of the Three and Six months ended June 30, 2025

Current wording

Comparison of the three and nine months ended September 30, 2025

Previous wording

The selling and marketing expenses are relatively unchanged. The changes are primarily due to lower share-based payments associated with marketing personnel in the second quarter of 2025 by approximately $1.0 million, offset by increased sales and marketing programs expenses during the second quarter of 2025.

Current wording

The selling and marketing expenses are relatively unchanged.

Previous wording

The increase in interest expense resulted primarily from interest charges related to increased interest-bearing weighted average debt in the first quarter of 2024 when compared to the prior year periods.

Current wording

The change in interest expense resulted primarily from greater interest charges related to increased interest-bearing weighted average debt in the first half of 2025 when compared to the prior year periods and lower interest-bearing weighted average debt during the third quarter of 2025. .

Previous wording

As of June 30, 2025, and 2024, we had $15.7 million and $15.6 million in cash, cash equivalents, and restricted cash, respectively.

Current wording

As of September 30, 2025, and December 31, 2024, we had $9.8 million and $15.5 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 $ 4.8 million pursuant to placements and offerings during the six-month period ended June 30, 2025. Since October 2024, we generated proceeds of $14.2 million by issuing shares of our Preferred Series A and A-1 stock.

Current wording

We have raised additional funds through the sale of our common stock for gross proceeds of $ 4.8 million pursuant to placements and offerings during the nine-month period ended September 30, 2025. Since October 2024, we generated proceeds of $14.2 million by issuing shares of our Preferred Series A and A-1 stock.

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 June 30, 2025, we issued 3,651,257 shares of common stock under such program for net proceeds of $4,221,956, excluding placement fees of $127,563. From inception through June 30, 2025, we issued 11,769,912 shares of common stock under such a program for net proceeds of $18,299,956, net of brokerage fees and legal fees of $ 756,251. As of June 30, 2025, the remaining amount to be used under the ATM offering program is $940,000.

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 September 30, 2025, we did not issue shares of common stock under such program. From inception through September 30, 2025, we issued 11,769,912 shares of common stock under such a program for net proceeds of $18,467,362 (gross proceeds of $19,223,613, net of brokerage fees and legal fees of $ 756,251). As of September 30, 2025, the remaining amount to be used under the ATM offering program is $776,387. The remaining amount to be used as of September 30, 2025 is equivalent to $940,000, as disclosed as of June 30, 2025, adjusted for certain recharacterized gross proceeds from 2023.

Previous wording

Our future capital requirements will depend on many factors, our revenue growth rate, expenditures related to our headcount growth and manufacturing, the timing and the amount of cash received from customers, the expansion of sales and marketing activities, the timing and extent of spending to support development efforts, the price at which we are able to purchase parts to incorporate in our product offerings, the introduction of platform enhancements, and the market adoption of our platforms. We may continue to enter arrangements to acquire or invest in complementary businesses, products, and technologies. We may, because of those arrangements, or the general expansion of our business, be required to seek additional equity or debt financing. If we require additional financing, we may not be able to raise such financing on terms acceptable to us or at all. If we are unable to raise additional capital or generate cash flows necessary to expand our operations and invest in continued innovation, we may not be able to compete successfully, which would harm our business, results of operations, and financial condition.

Current wording

Our future capital requirements will depend on many factors, our revenue growth rate, expenditures related to our headcount growth and manufacturing, the timing and the amount of cash received from customers, the expansion of sales and marketing activities, the timing and extent of spending to support development efforts, the price at which we are able to purchase parts to incorporate in our product offerings, the introduction of platform enhancements, and the market adoption of our platforms. We may continue to enter into arrangements to acquire or invest in complementary businesses, products, and technologies. We may, because of those arrangements, or the general expansion of our business, be required to seek additional equity or debt financing. If we require additional financing, we may not be able to raise such financing on terms acceptable to us or at all. If we are unable to raise additional capital or generate cash flows necessary to expand our operations and invest in continued innovation, we may not be able to compete successfully, which would harm our business, results of operations, and financial condition.

Previous wording

We owe approximately $20.0 million under fixed rate obligations as of June 30, 2025. In addition, we owe GE certain minimum royalty payments under a license agreement and other accrued expenses which amounted to $1.5 million as of June 30, 2025.

Current wording

We owe approximately $18.5 million under fixed rate obligations as of September 30, 2025. In addition, we owe GE certain minimum royalty payments under a license agreement and other accrued expenses which amounted to $1.4 million as of September 30, 2025.

Previous wording

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 negative working capital, which consists of accounts receivable, inventory, net of trades and compensation payable, amounted to $8.5 million and $7.2 million as of June 30, 2025, and 2024 respectively.

Current wording

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 negative working capital, which consists of accounts receivable, inventory, net of trades and compensation payable, amounted to $8.7 million and $11.7 million as of September 30, 2025, and 2024 respectively.

Previous wording

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, 2025 and 2024:

Current wording

Please see below a summary of the primary components of our cash used in or provided by operating, investing, and financing activities during the nine months ended September 30, 2025 and 2024:

Previous wording

The Company’s liquidity sources include $15.7 million in cash and cash equivalents, including restricted cash of $2.8 million held for long-term purposes, and $8.6 million of working capital deficit as of June 30, 2025. The Company has a history of recurring operating losses, and its net cash used in operating activities amounted to $6.3 million and $10.4 million during the six months ended June 30, 2025, and 2024, respectively. The Company has also generated net cash provided by financing activities of $7.3 million and $3.8 million during the six months ended June 30, 2025, and 2024, 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 $9.8 million in cash and cash equivalents, including restricted cash of $2.1 million held for long-term purposes, and $8.7 million of working capital deficit as of September 30, 2025. The Company has a history of recurring operating losses, and its net cash used in operating activities amounted to $11.3 million and $13.0 million during the nine months ended September 30, 2025 and 2024, respectively. The Company has also generated net cash provided by financing activities of $6.5 million and $4.1 million during the nine months ended September 30, 2025 and 2024, 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.