SKYX Platforms Corp. (SKYX) Earnings Call Transcript & Summary

Good day, and welcome to the IAccess Alpha Virtual Best Ideas Summer Investment Conference 2025. The next presenting company is SKYX Platforms Corp. [Operator Instructions] I'd now like to turn the floor over to today's host, Lenny Sokolow, CEO of SKYX Platforms Corp. Sir, the floor is yours.

Thank you very much, and thank you for the opportunity. I just want to -- I'll go through our main slides and make sure everyone has an overview of what we have at SKYX and our mission, of course, is making homes and buildings safe, smart and advanced as a new standard. And of course, we've got our disclosures, cautionary statements, and I'm going to play a 3-minute video and give you a nice overview of our product. [Presentation] Okay. So sorry, there some audio problems that we're having. So we have -- I'm sure you've seen the slides, but the CAGR growth has been extraordinary. We have, as I said before, the growth in the markets in multiple ways for home construction and new buildings, et cetera, will continue in smart buildings, again 97 patents, 36 issued globally. So to continue on, and I know some of the audio has been missed, we have the slides are a little lagged. I'm sorry. The 2023, $58.8 million in sales; 2024, $86.3 million. And we've had almost 5 consecutive quarters of growth. We did with insiders and the strategic investors, we did a $15 million raise starting in October of 2024 for preferred convertible at $2 per share. We have, again, our 3 generations, the Plug, the Smart and the all-in-one, which will be in production by the end of this year. We have already in the market, our app and control our Generation 2 and works with Siri, Alexa, Google Home, et cetera. In the last few years, we've won 7 CES awards. And we've announced a few weeks ago, the $3 billion smart urban city in Miami was announced. This is downtown Miami. The Wynwood, which is the Graffiti cool area that they've built, you have South Beach over here in the horizon and this Smart City is just north of that. We expect to have over 500,000 installations of our smart platform technologies and products. And that's a conservative number. The -- it's going to be mixed-use commercial and train station to name other construction that they'll have there. This is going to be a 3-year project. We have announced 2 largest builders in Miami as well as one of the biggest international builders. And so this is, we think, also a beginning for the smart cities and that we find them as early adopters. So in terms of distribution, we've had the Home Depot, Wayfair, Tichler. These are all announced relationships. [indiscernible], the largest in Europe in Ruee Appliances, which is the largest Chinese manufacturer for the U.S., the Chinese markets and the European markets, they do about half of the manufacturing for these markets. They provided as a partner also financial support, similar to the financial opportunity that we use on our websites where we use the Dell model, we collect day 1. We don't pay the vendors until 30 to 60 days. So we've also, again, solving this problem of the wires and the plug and using our technology and so what we've done is from a mandatory. This is now the regulations behind all of what accomplished. You have the wall outlet here on the left, lights used to be put in by 3 wires and then the outlet was created in 1904. Again, Edison involved and didn't become a standard until the Edison socket was created, 1980s, you had the ground fault circuit interruptor. I know you all have that in your home or in terms of your kitchen or bathroom because it was mandatory in the '80s, they created a standard and your buttons may be different color, but everything is a GFCI, ground fault circuit and interrupt the people that have these patents, they still get royalties on them. But what's interesting is that the people -- the inventors of the wall outlet and the GFCI, they have patents only on the receptacle, not on what got plugged into it. We're different. We have patents on both sides, the receptacle and our plug, very unusual. And I actually met the founder and the Executive Chairman over 13 years ago. I was the General Counsel and EVP of a company made hair dryers in the '80s, just after this GFCI was mandated. I went through the process of having to license this technology and all the hair dryer companies like GE and Philips and Sundam, Con Air, like my company, we had to go license this technology, and it's now mandatory. You've got to buy a hair dryer today, it's on the end of the cord. And so this is the standard, and this is with the landscape that we have in the United States. And so what we've done is that we've created a standard just like the solution, the solution, this is the equivalency of concepts. So the wall outlet that is involved in our outlet. And so what's transpired is the -- in terms of the ceiling receptacle and why the TAM is so huge is that there are so many installations. You've got over 140 million homes in the U.S. and about 30 fixtures or installs in the U.S, about 5x more than the wall outlet. And you -- the market for this is massive, and this is just in the U.S. and just in residential. We're talking about annually about 420 million U.S. fixture installs in the U.S. and then you get the commercial, it's that much, if not more. So again, when we went to the regulators, we presented the equivalency of concepts just like the wall outlet, we have the junction box, which is standard, and we don't cannibalize anybody. We don't replace this. The 3 wires come out of here and those 3 wires go into our receptacle and we screw in the bracket, cover plate, finished product and then the plug. So this is what the regulators saw. And this is what we've accomplished really. When you think about FDA, the equivalent is like we got almost over 10 FDA Phase III approvals. 1904 is the water receptacle, we talked about the '80s, the ground fault circuit interruptor became mandatory. And what happened is over the last 13 years, we're in 10 segments in the electrical code. And 2 years ago, we got approved by ANSI, which most people don't know. It's probably even more groundbreaking. Those are the standards for commercial buildings. And -- the -- this is -- you can't put in rebar or concrete without getting -- having an ANSI subject to ANSI specifications. We got ANSI approval, which is very unique and very rare. And the American Institute of Architects is already training on our solution or products. So what happened basically after all these segments that were approved and mandated after 120 years, the definition of a receptacle got changed, which most people don't know, and this is a little disconnect we have in the marketplace because if people knew what they know about the FDA, about the NEC, we would -- it'd be a better understanding. But now the National Electrical Code has changed the code to add a second defined receptacle. You have this one old from 1904 and you have ours. And so what's happened is that as a result, a builder could put in a wall outlet. They don't need to plug in lamps. They got their certificate of occupancy or a permit. They could put in a ceiling receptacle or [indiscernible] or an outdoor light and they don't need to put in a fixture or a cheap fixture. They just need to put this in and they could get their certificate of occupancy or permit. That's one is a groundbreaking time saving and money saving, but that's not really the best part. And then besides that, they've now given us a generic name already. This is all codify. They've called us the WSCR, just like the GFCI. We're the weight support ceiling receptacle. We're a receptacle, but we can hold 200 pounds. The junction box only holds 50. So we're overengineered from a weight perspective. So what's groundbreaking is that over -- after 120 years, the definition has been changed. We've been given a generic name that's already in the NEC code book. And the next step that we've done is that we've applied for mandatory. And the guys that signed our application, just to remind you, are these 2 guys, Mark Earley, who head the code and Eric Jacobson. We've also announced a very prominent person who is very close to the U.S. administration and President that a lawyer and very prominent internationally has concluded that there's at least 4 other U.S. agencies that can also require this to be mandatory because we've proven that we save lives and we mitigate damages and property damage. This is the data from the National Fire Protection Association, which is the parent umbrella to the National Electrical Code. There's over 430 civilian deaths per year and thousands of injuries annually. This is just from twisting wires, fixtures and the ceiling response was wrong. They may work for a couple of years, but maybe they'll start to spark an arc if it wasn't done correctly. And then over 500,000 ladder falls and hundreds of deaths annually. Yesterday, I spoke to someone, an analyst who said they're [ untled ] by changing a light bulb in their garage from being on the ladder. And of course, the tens of thousands of electric shocks annually. So this is their data. This is -- they didn't give us these code provisions because they like us, it's because we save lives according to their own data. So our whole strategy is basically to -- when the builder builds the building, they're putting in the receptacle and they're putting that receptacle and they could get their certificate and then we call it the razor and blade model, not to be simplistic, but -- and then all these products can click right in and be interchange. The reason why the lighting companies have collaborated with us is they believe that we will reduce the velocity, we will increase the velocity and reduce the replacement cycle of lighting sales because it would be so easy to replace your light. And you've seen already for 2 seasons, we've got the Christmas tree that you plug in. So we -- all these products -- these are already selling on our websites. These are landed already with the plugs ready to go. And we have patents on all of the recess lighting, which is a massive lighting and global patents and exit signs, of course, for commercial and emergency lights. And then the fans, we announced a fan that we're launching and getting great demand for an all-in-one fan that we have global patents for. It's a fan and a heater. And for all seasons, the big box stores, we believe, will be very interested in this and are very interested in this. We did a press release yesterday and the turbo fan below, fan to cool and the same thing is 2 different styles. And what we didn't know, thinking we're smart sometimes I know it all, but we didn't know is that these big box stores have a big problem with these box heaters that people do have fires and injuries and death and they sue the manufacturer and they see the retailer. And having the heaters off the floor is why we designed it for safety, but we didn't realize that these corporate -- these enterprises, there's a whole risk issue for them as well for liability. So this is a major product. This is a product we believe will get us to cash flow positive by the end of this year. And of course, it's smart -- it comes with all our smart features. So this is a very quick overview. I know we have limited time. We have all of our products available box, ready to go, selling the outlets, all in one platform for later this year, et cetera. And then we have a licensing strategy that we've developed to go to market and we're prepared to license all of what we have to third parties. The market is so vast, it's incredible. So maybe with that, I will see if there's any Q&A. And we're -- and I could do quickly one question is -- and I'm not sure what there was a referral about ANC and NMA, has already approved the product. I think it's unrelated to what the regulators do, but it does help. And again, the mandate opportunities are broader now with other government agencies. And I apologize for the sound getting cut off. And another quick question is how is the pipeline of new partners and distributors. Some of them are -- the pipeline is good. We just -- I mean, we just announced the Smart City, which is massive and unit opportunity, very large developers we've announced, and there will be more penetration when all these things become something that we make sure that it's reportable. So if -- I think that's it for the questions. In terms of time, we got about a minute left. So I hope if you -- there's any further interest, they'll know how to contact me. Happy to have a one-on-one and also a full presentation because I know this was shortened when you have -- when -- if there's an interest, I can do a full presentation on Zoom. So we make ourselves available to anyone that has an interest. So we appreciate your interest as well. I think that's it, Mr. [indiscernible]