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

Good day, and welcome to the IAccess Alpha Virtual Best Ideas Summer Investment Conference 2026. Our next presenting company is SKYX Platforms Corporation. [Operator Instructions] . I'd now like to turn the floor over to today's host, Lenn Sokolow, CEO of SKYX Platforms Corporation. Please go ahead.

Thank you for the opportunity to present SKYX platforms. We are the future of Smart and Safe homes and buildings, and you'll see why geared this presentation for those who are new to the story and also who -- those who are familiar with that try to hit the highlights. We were expected to deploy over million of our products, including our advanced plug-and-play technologies over multiple projects that we've already announced we believe, will be in over 100,000 homes or units by the end of 2026 in our professional and retail segments. Despite warmer weather and you'll see in our video, our sales of our patented Turbo heater and fan are continuing to grow and the company is expanding this brand new category that we've created using our platform as an all-season fan. Q1, we announced the beginning of our collaboration with NVIDIA ecosystem for part of their Connect program. We are not just like another mobile phone, but we're a platform we work with multiple verticals using -- that are using the AI and the NVIDIA AI chips. So those things that are being embedded now and also that can be amended in the future. We have revenue streams and projected channels include recurring revenues through interchangeability, upgrades, AI services as discussed, monitoring subscriptions and more -- we continue to progress towards our national and ultimately, global safety code standardization. We have a team that progresses towards a mandate being mandatory in homes and buildings. And I'll explain to you what we have achieved from a regulatory perspective already. The -- we are going to show now a little over a 4-minute video. It's going to be an overview of our products. It's going to give you a demonstration. We did it a Marriott hotel through 1 of our strategic investors and that owns 80 hotels, including the 60 Marriotts as well as an example of the turbo heater and fan, which is just 1 idea of the multiple products that go into our platform. [Presentation]

And I think that gives you a good overview of the products, the penetration we would have and are already having into the hotels the hospitality segment as well as the product of the turbo heater and fan. This is an overview of some of our strategic management team as well as active advisers Ronnie Collins, our Founder and Executive Chairman, responsible for over 100 patents and patents pending of a 250 granted. Steve Schmidt is a former CEO of Nielsen, the data rating company as well as Office Lebo International and the AI for us, it's all about data and the L and all the AI. They're all very dependent on data. And what now is lacking is not the public data, which the AI tools could scrape but also now private data from homes and buildings. So there's huge opportunity in that direction. Bob Nardelli is a very active adviser got us into Home Depot for is the former CEO of Home Depot and GE Power Sesenta Chrysler, our Lead Director is Governor Tom Ridge, a 2-time Governor of Pennsylvania and first Head of Homeland Security in the U.S. All WiFore President of Disney, who is in charge of Park's Hotels, resorts, cruise ships, and there are other products. The Lance Shaner is the gentleman that on that Marriott, the demonstration was performed and he's been a strategic investor and adviser to us and has helped us access also the Marriott corporate world as we are on our way to being a standard for the hotels. Mark Earley and Eric Jacobson, probably the 2 most important people, at least known that they signed our application for mandatory built on our existing standards that we've achieved and the that are already historic -- and Mark Gerlings Head of the NEC, the National Electrical Code and Chief Engineer NFPA and the umbrella organization for the electrical code after 30-plus years as CEO and how any of those organizations he joined us as an adviser. He and Eric has signed our applications. It's very important. Khadija Mustafa former Head of Global Microsoft and a very strong perception 3 years ago that our platform will be a hub and a home or building for AI for AI chip performance and data aggregation and Paul Chernowsky, Founder of -- under car warranty, he's our insurance expert, and we believe that the insurance companies will be incentivizing buildings and residential and buildings to use our products just like a home alarm or other products that prevent fires, et cetera, like smoke in CO2 right now about 5 of those mandates fiber of those mandated products for safety already going to be embedded in our Generation 3 platform, which you saw in the video. Again, our mission is to make homes and buildings safe and smart. Our -- the patents, that I mentioned, about 100 pending and granted there's 45 issued that are global, including China and India and Europe. The TAM in the U.S. alone is over $500 billion, and there's about 4.2 billion ceiling applications in the U.S. We're already growing our business through builders, hotels and pros in Home Depot, Wayfair, Target, Lowe's, and we have an e-commerce platform or 60 websites that we own that we've -- since 2023 that we've learned that we've used to educate and also to start selling our own products and our plug and play ready. Our revenue streams will be professional and retail through sales as well as royalties licensing subscriptions, monitoring AI and data aggregation. We believe that we will be supported by the insurance companies. As I mentioned, for reducing fires, later falls, electric fusions, among other things. And the reason why the builders and the hoteliers already installing us and we already have announced projects, which I'll describe. It's because we save them already 90% of the time, 90% of the money to install the fixtures -- the reason why the regulators have already made us a code standard and on our way for mandatories because we save lives and prevent property damage. Two very important constituents. The revenues we've had in '23 are $50 million to $863 million and $24 million to $92 million. We have now after Q1, 9 quarters of consecutive comparable quarter growth year-over-year. This is an announced city for Smart City in Miami that there was downtown Miami, Wynwood our Basel is showcased. We're just north of that 63 acres to billionaire developers building Miami for multiple decades of side a 200 land lease from the city of Miami to build this development, including tri-ralstation, urban living parts and the X factor, as we call ourselves Smart X is our smart platform to making all of this safe and smart. And this has been an announced project that will be a 3- to 4-year build-out, and we probably started seeing construction next year. And we expect around 500,000 units conservatively of our product in that smart city and developed by the design is architect, a global world not architecture firm became famous for doing the Microsoft building in Paris. And again, that's groundbreaking. It's given us a lot of profile internationally, and it's a whole area because we're able to deliver this platform of products and an AI ecosystem. The announced projects, important true in Texas. We have the collaboration in the Middle East and Saudi Arabia and Egypt. There's a lot of hotels on the board for the -- for that region and growth as well as a massive amount of residential building. And the North Carolina, a smart home development has been announced next to the Microsoft mega work being built. And we've also announced Pittsburgh in New York, the smart home community. And again, just that community alone, we're looking to supply 10,000 of our products or units there. The -- we have a strategic partnership we've announced with a European hotelier group OTT grew by, and we've already announced 2 hotels getting renovated and additions using our platform of our plug and play. Our product works in 110 and 220-volt are ready for basically a global expansion. And these hotels are some of them include historical heritage sites, 1 in France and then there's 1 in the Czech Republic. The -- so again, the Smart City, Austin, Texas project, San Antonio, North Carolina, Saudi, New York, Europe, the 2 hotels and the hotelier is wants to do it for all their hotels and buildings as well as we have a separate agreement where they could be a representative of an agent to sell to others on a nonexclusive basis. We have the opportunity to be the Tesla of smart homes. The -- we have the smart platform that works with all of the fixtures and we have the ability to go into the outlets, wall switches, et cetera. And when you look at all these points of contact, you're looking for the smart fixtures, the fixtures itself and the outlets they're around 60 per home and the outlets for wall switches and outlets are about 30%. We're talking about 90 locations. And this is the ability for us to really control and command the whole house. So the -- our whole model is built on the razor blade, meaning that once our receptacles installed the -- anything that plugs in is our product. Our patents cover both the female receptacle and the nail of the plug-and-play plug and 1/3 of our patents covering a smart sensor, sound voice WiFi Bluetooth at touches either side of this is our patents that we control. So again, this is a whole ecosystem. And once these Razors, as we call it, our receptacles are installed, it really becomes universal and leads to a future of products that will either have produced or will have licensed. And the -- again, you saw our Generation 1 plug and play to smart plug and play, which we're already selling these 2 for the last several years with our app. That's what works all cloud-based and generation 3, which will be second half of this year. which will basically include anything that we want to have included. We have all these features already, the speakers, emergency CEO, smoke detector or so detect there works with Amazon and Google, just like our existing generation to all of the above anything that's not invented could work on this. What do we give so we get someone we have unlimited electronic real estate -- we have the best location in the home in the center of a ceiling, and you can still put a light fixture in the middle. So again, the idea of generation 3, we took from the iPhone, we had all these separate products and now all of a sudden, everything is on one device, and we have the same thing. It's not rocket science. We just Turkey same model. And what we saw and the reason why over 95% of the homes in the U.S. are not smart just because of this to do well on room and to integrate and synchronize different gadgets, different smart features and install and the latency and synchronizing it can take you a day or more to install on long platform could take 3 minutes. They just click right into their celic and it all works already with our app -- and again, once we have the whole ecosystem for light switch was allow house, there's no other solution out there like it. Again, the platform, the location implementing existing technologies into all-in-one platform. We can monitor and then subscriptions smoke and CO they'll be audible, if there's a fault smoke and we could -- it will be an alert on the app on the following, if you want, for monitoring fee, we'll call it a fire department or police department, 911 calling, et cetera. and then having this location, having WiFi Bluetooth with our products, generation 2 and the all-in-one platform gives us the ability to aggregate data which is the kind of the missing element in the a lot of the LLM that are out there is having a private home data. Apple doesn't share theirs. Google doesn't share theirs. Samsung doesn't share theirs. And we have the ability to aggregate legal anonymize data that will be quite valuable. And our ability to penetrate on the quickly will be as impressive. It's different than even a ring or a Nest because one was going to light or a fan or some type of fixture that will come with our ability to aggregate data -- and again, we talked about the regulators and insurance companies, that's going to be an important development as the year -- next year bear we'll see a greater adoption and greater features that will be put as a premium for safety and for preserving property. The -- and the reason why we're in this location, and it's the optimal like, for example, people put a WiFi extender and decide and all because that's where the power is. But when you have a WiFi extender or Bluetooth and it's the center of the ceiling when you have unlimited power, you've got a limit -- you increase the range of the speed 2 to 3x. And so this is a very important factor in why these extenders I go on the side, well, I usually or become problematic as they go through even a room, any furniture et cetera. And so the one platform, I think the concept of having all these features and the safety and for smart, we have post-sale revenue streams of data for AI services subscriptions, like we said, the fire department, monitoring -- it's very important and very unique proposed sales and to being able to have a value there even after we sold the product. And again, saving time when vendor could take a few minutes install a smart home within a few hours, not weeks and building days, not months. And again, the reason why we penetrated already is the 90% of time, 90% of the labor costs that we've saved. The future is here, we've done a demonstration with the prefabricated homes that makes a lot of sense -- this is really part of the Tesla concept, and you could put our receptacles at the factory in these prefabricated in the modules, bring them out to the property and some wind it up when everyone's ready, nothing gets damaged. And it's just a matter of click, click and click. And this is the regulator. This is what the market's missing. It's really important to understand is that we have been through all these changes. It's all about safety. We want some of the wall outlet from 1904. This has not changed, used to be wires. And of course, Edison Bolt was done with wires then became a standard until the Edison base was invented. The '80s we saw the GFCI that went into bathrooms and kitchens for people who are dying became mandatory. It was built after the 80s, mid-80s at home or a building. And by the way, these guys still collect a royalty. And the -- and then in 1991, these plugs get put on the end of air dryers, culinarians, et cetera, for bathrooms. It's still required as of this day. And then we come along and Sky events, the solution for this Asia problem of the 3 wires in the junction box and all it takes is our receptacle. I think the 3 wires go in and the true into the bracket, takes you a few minutes, and you're done. And you'll never change it again, no 1 will ever touch wires again. And so what's happened is that we saw this problem -- and we've come off a solution time cost fires. Our device holds 200-plus pounds each blocking mechanism. The junction box is a coated for 50 pounds. And the key is that we already voted, and this is our FDA equivalent concept. We've already been voted into 10 segments of the National Electrical Code. We are a standard. This has gone on for 14 years. That's the bad news. But to get a manager can take 14 years or 15 years like a lot of the prior inventions and we've already been at this for that long. So we were ready for mandatory. We've checked all the boxes. We've also received ANSM approval, which most people don't know what that means, but you can't get in a building or a home building or a commercial building without NCC approval as you need that for rebar, for concrete, et cetera. We received that over 2 years ago and which was really historical and even more historical is that because of these changes in the code, they've changed the definition in the National Electrical Code to include -- 2 receptacles. One is this 1 from the early 1900s and the other is ours. And more important, they have given us a generic name, WSCR what support select -- this is a story, and I don't believe the market has yet appreciated this, and we have the next step, again, is mandatory. And they did this because their own data shows that there's over 400 tests per year from people putting in fixtures and ceilings and correctly, over 500,000 later falls, thousands of dust from later calls. And then not only would the NEC is mandated to include to consider now the mandate. Now -- but also the CDC, the centers for disease control and then the CPSC, the Consumer Product Safety Commission. All those are responsible for considering and making this mandatory. All of these achievements have enabled the builders and the hoteliers to install what we have and get their CEO and their permits even without putting the fixture in just like they put a wall outlet in, they put ours in, and they could get their CEO and permit. And then after that, they can then put in the fixtures or fans or whatever other smart devices they want. So this is what's groundbreaking. This is what's driving what we have long term and the fact that we could be a full ecosystem as really material in the future of homes. And no one else has this position. There is no -- you can't really name 1 company that is a smart home company you can name one electrical car company. But before that, there was no other Tesla. So we know what we have. I think it's exciting and the global applications are over USD 10 billion, USD 500 million, which I mentioned annually. And and we think the applications are the best. And whatever is invented in the future, we know that we can plug in here. Once this is a standard like all outlet. We know that it will plug in the year and again because of our patents, we'll either have a license or it will be our product. And more importantly, and once it's mandatory, we have to license the product on a nondiscriminatory basis for a fair royalty, just our basic plug and play, all the smart -- anything that's smart is still within our control. But what's really interesting is that there's already been one company Euro phase that's announced a license agreement with us. So they've determined that because of what we have they already thought it was in their interest as a company supplying lighting residential and commercial and hotels to have our plug-and-play solution. We signed a 5-year licensing agreement. It's material because the -- this is happening is happening without the regulatory mandate and that's because the market is driving it. So that shouldn't be lost than what it would it is that we've achieved. And so all of our products are pretty straightforward. And again, anything embedded in the future will lead into our outlet. So if I could, then would appreciate any questions or comments, which you can provide through one-o-ones or you could follow up and get my contact information I'd love to discuss anything in greater detail and have a range for Zoom, whatever makes sense for you. So appreciate your time, and thank you very much.

That concludes SKYX Platforms Corporation's presentation. You may now disconnect. Please consult the conference agenda for the next presenting company.