Release Date: August 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- SKYX Platforms Corp (SKYX, Financial) reported record second-quarter sales of $21.4 million, a significant increase from $15 million in the same quarter of 2023.
- The company has a strong intellectual property portfolio with 97 patents and pending applications, including 36 issued patents globally.
- SKYX Platforms Corp (SKYX) has established key collaborations with major companies like Home Depot, GE Licensing, and Ruee Appliances, enhancing its market reach and production capabilities.
- The company is making significant progress in market penetration, with its products now in nearly 10,000 US and Canadian homes, and expects to be in tens of thousands of homes by 2025.
- SKYX Platforms Corp (SKYX) is on track to become cash flow positive by 2025, leveraging its Dell Working Capital model and strategic collaborations to enhance its cash position and lower its cost of capital.
Negative Points
- The company reported a decrease in cash, cash equivalents, and restricted cash from $19.8 million as of March 31, 2024, to $15.6 million as of June 30, 2024.
- Despite the revenue growth, SKYX Platforms Corp (SKYX) reported a net loss of $7.5 million in the second quarter of 2024, though this is an improvement from a net loss of $12.3 million in the same quarter of 2023.
- The lighting and home decor market is currently facing substantial declines due to a slowdown in the real estate market and post-COVID renovation slowdowns, which could impact future sales.
- The company is still in the process of fine-tuning its Gen 3 all-in-one platform product to meet regulatory standards, which could delay its market launch.
- SKYX Platforms Corp (SKYX) is heavily reliant on its strategic collaborations for financial backing and production capabilities, which could pose risks if any of these partnerships were to falter.
Q & A Highlights
Q: Can you comment on how the Ruee Appliances relationship ties into the Home Depot collaboration and its impact on production capacity?
A: Rani Kohen, Executive Chairman of the Board: The collaborations, including Ruee Appliances, help us with a variety of smart and advanced plug-and-play products. These relationships provide us with products in large quantities and enable us to pay after we sell, enhancing our gross margins and distribution channels. Ruee Appliances, being a leading manufacturer, is strategic for our long-term growth.
Q: Since the Home Depot announcement, have other retailers shown interest in collaborating with SKYX?
A: Rani Kohen, Executive Chairman of the Board: We are in discussions with other retailers, although we can't share specifics yet. Home Depot is a significant partner, but we are also targeting other sectors like home decor and hope to announce additional collaborations soon.
Q: Are there any developments in the builder channel following the Home Depot announcement?
A: Rani Kohen, Executive Chairman of the Board: We are very active in the builder channel and hope to share more developments soon. Our collaborations with vendors like Ruee Appliances allow us to offer a variety of products, which are key to builders. We are working on expanding our product range to include Recessed Lights, wall sconces, ceiling fans, and more.
Q: What is the current status of your cash burn and funding needs?
A: Rani Kohen, Executive Chairman of the Board: The Michael Dell (Trades, Portfolio) model helps us manage our cash position effectively. Our collaborations and terms with vendors allow us to operate without needing significant additional funding. We feel confident that we can achieve cash flow positivity in 2025.
Q: Can you provide an update on the launch timing of the Gen 3 all-in-one platform product?
A: Rani Kohen, Executive Chairman of the Board: We expect to start production in the second half of this year, likely towards the end of this quarter or the next. The product is performing well in tests, and we are finalizing quality control and regulatory requirements.
Q: What is the progress on the collaboration with Ruee Appliances, and will it impact gross margins?
A: Leonard Sokolow, Co-Chief Executive Officer, Director: Ruee Appliances brings multidimensional benefits, including favorable cash conversion cycles and flexibility in servicing big-box stores. Their expertise in lighting manufacturing will help us expand our market and improve gross margins.
Q: What is the latest on the GE relationship, and how active are they in the business model?
A: Rani Kohen, Executive Chairman of the Board: We are very active with GE, conducting weekly calls and preparing for significant opportunities. GE's experience is invaluable as we aim to make our ceiling outlet receptacle a global standard. We expect to start serious discussions about collaborations and licensing with various industries soon.
Q: Are there any updates on the builder channel and its impact on your business?
A: Rani Kohen, Executive Chairman of the Board: We are actively working on expanding our product range to cater to builders. Our collaborations with vendors like Ruee Appliances allow us to offer a variety of products, which are key to builders. We hope to share more developments soon.
Q: How does the collaboration with Ruee Appliances impact your financials and production capabilities?
A: Leonard Sokolow, Co-Chief Executive Officer, Director: Ruee Appliances enhances our cash conversion cycle and provides flexibility in servicing big-box stores. Their expertise in lighting manufacturing will help us expand our market and improve gross margins.
Q: What is the significance of the GE relationship for SKYX's future?
A: Rani Kohen, Executive Chairman of the Board: The GE relationship is crucial for our goal of making our ceiling outlet receptacle a global standard. We are preparing for significant opportunities and expect to start serious discussions about collaborations and licensing with various industries soon.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
