Company Sequentially Reduces Net Cash Used in Operating Activities to $2.5 Million
MIAMI, FL / ACCESSWIRE / August 9, 2023 / (NASDAQ:SKYX) (d/b/a "Sky Technologies"), a highly disruptive platform technology company with over 60 pending and issued patents globally with a mission to make homes and buildings become safe and smart as the new standard, today reported its financial and operational results for the second quarter ended June 30, 2023.
Second Quarter 2023 and Subsequent Operational Highlights
- Generated $15 million in revenue in the second quarter of 2023, reflecting a partial quarter of sales, including commencement of sales of its smart and standard plug & play products.
- Sequentially reduced net cash used in operating activities to $2.5 million in the quarter.
- Cash, cash equivalents, restricted cash, and investments available for sale totaled $23.7 million as of June 30, 2023, as compared to $16.8 million as of December 31, 2022.
- Appointed several strategic advisors, including:
- Khadija Mustafa, former Microsoft AI and global business leader, as a Senior Tech, AI and Global Business Advisor.
- Eric Jacobson, former President, and CEO of The American Lighting Association (ALA), as a Senior Product Standardization Advisor.
- Al Weiss, former President of Worldwide Operations at Walt Disney Parks, Resorts and Cruises, as a Senior Business Development Advisor.
- Joined the broad-market Russell 2000® and Russell 3000® Indexes at the conclusion of the 2023 Russell Indexes annual reconstitution.
- Successfully acquired Belami E-commerce, a profitable conglomerate with 64 websites for lighting and home décor. The acquisition was primarily funded using the Company's stock, while the cash portion was funded by two major SKYX investors.
- The E-commerce acquisition is expected to enhance the Company's cash-flows, speed up time to market for SKYX ceiling safe plug & play smart and standard products, as well as expand distribution across professional and retail segments while concurrently serving as a marketing and education platform.
Safety Standardization Highlights
The Company is eligible to apply for a building safety standardization requirement with the National Electrical Code (NEC) for its ceiling outlet receptacle and is expected to file its application within the next few weeks.
Management believes that after over 12 years of its standardization process including its product specification approval voting for by ANSI / NEMA (American National Standardization Institute / National Electrical Manufacturing Association), it has met the necessary safety conditions for becoming a ceiling safety standardization requirement for homes and buildings. In the past 12 years the Company's product was voted into 10 segments in of the NEC Code Book. Voting decisions are at the discretion of the NEC voting members.
The Company's code team is led by Mark Earley - former head of the National Electrical Code (NEC) and former Chief Electrical Engineer of the National Fire Protection Association (NFPA) - as well as Eric Jacobson, former President and CEO of The American Lighting Association (ALA).
Second Quarter 2023 Financial Results
Revenue in the second quarter of 2023 increased to $15.0 million, including E-commerce sales as well as smart and standard plug and play products, reflecting a partial quarter of approximately 60 days of sales.
Gross profit in the second quarter of 2023 increased to $4.7 million, or 31.3% of revenue. Gross profit was positively impacted by a partial quarter of gross profit from the aforementioned acquisition of Belami E-commerce.
Cash, cash equivalents, restricted cash, and investments available for sale totaled $23.7 million as of June 30, 2023, as compared to $16.8 million as of December 31, 2022.
Cash used in operating activities for the three months ended June 30, 2023 totaled $2.5 million, as compared to $2.8 million in the same year-ago period.
The Company's current liabilities include a 2024 non-cash payment of $5.6 million, payable in shares to the Belami shareholders as part of the consideration for the acquisition.
Operating expenses in the second quarter of 2023 included $8.2 million in non-cash share-based payments as well as depreciation and amortization, $2.2 million of which were to new employees following the Belami acquisition, in addition to $5.0 million in cash for Belami selling, general and administrative expenses (SG&A) and $3.7 million for SKYX SG&A totaling $17.0 million, as compared to SKYX SG&A of $4.6 million (which included $2.4 million of non-cash shared-based payments) in the second quarter of 2022. The increase in operating expenses were primarily driven by the acquisition of Belami, offset by the improved operating expense structure of SKYX.
Net loss in the second quarter of 2023 (which included $8.7 million in non-cash share-based payments as well as depreciation and amortization, and $3.6 million in cash) totaled $12.3 million, or $(0.14) per share, as compared to a net loss of $4.6 million (which included $2.4 million of non-cash shared-based payments), or $(0.06) per share, in the second quarter of 2022. The increase in operating expenses were primarily driven by the acquisition of Belami, offset by the improved operating expenses of SKYX.
The Company's financial statements for the quarter ended June 30, 2023 will be filed with the SEC and are available on the Company's investor relations website.
The second quarter of 2023 was highlighted by our first significant revenues that include sales and rollout of our ceiling smart and standard plug and play products that are now on 16 leading U.S. and Canadian websites. Despite being a partial quarter, it showed what we believe is a promising cadence of sales with a robust gross margin profile, notably reducing the cash burn of SKYX on a sequential basis.
In addition to the acceleration of marketing, distribution channels, and sales to both professional and retail segments, the websites are expected to provide additional cash flow to the Company, which, when combined with our existing cash, should be sufficient for at least 18 months of operations.
We are encouraged by our commercial journey's momentum, paving the way for our standardization efforts.
The 16 leading websites that include Company's ceiling smart and standard plug and play products are 1stoplighting.com, Lightingdesignexperts.com, Canadalightingexperts.com, Americanlightingstore.com, Homeclick.com, and Lunawarehouse.com among others. The websites include banners, videos and educational materials regarding the simplicity, cost savings, time saving and lifesaving aspects of the of the Company's patented technologies.
About SKYX Platforms Corp.
As electricity is a standard in every home and building, our mission is to make homes and buildings become safe-advanced and smart as the new standard.
SKYX Platforms Corp. (NASDAQ:SKYX) has a series of highly disruptive advanced-safe-smart platform technologies, with over 60 U.S. and global patents and patent pending applications. Our technologies place an emphasis on high quality and ease of use, while significantly enhancing both safety and lifestyle in homes and buildings. We believe that our products are a necessity in every room in both homes and other buildings in the U.S. and globally. For more information, please visit our website at SKYXPlatforms.com or follow us on LinkedIn.
Certain statements made in this press release are not based on historical facts, but are forward-looking statements. These statements can be identified by the use of forward-looking terminology such as "aim," "anticipate," "believe," "can," "could," "continue," "estimate," "expect," "evaluate," "forecast," "guidance," "intend," "likely," "may," "might," "objective," "ongoing," "outlook," "plan," "potential," "predict," "probable," "project," "seek," "should," "target" "view," "will," or "would," or the negative thereof or other variations thereon or comparable terminology, although not all forward-looking statements contain these words. Such forward-looking statements include any statements regarding SKYX's products becoming a new standard. There can be no assurance that any of the Company's current or future products or technologies will gain market acceptance or that they will be adopted by any state, country, or municipality, within any specific timeframe or at all. Our estimates of the addressable market for our products may prove to be incorrect. The projected demand for our products could materially differ from actual demand. These statements reflect the Company's reasonable judgment with respect to future events and are subject to risks, uncertainties and other factors, many of which have outcomes difficult to predict and may be outside our control, that could cause actual results or outcomes to differ materially from those in the forward-looking statements. Such risks and uncertainties include statements relating to the Company's ability to successfully launch, commercialize, develop additional features and achieve market acceptance of its smart products and technologies, including commencement of sales, the Company's efforts and ability to drive the adoption of Sky's Smart Platforms into homes, buildings, cruise ships and communities and adoption by hotels, builders and architects, ability to capture market share, ability to execute on any sales and licensing opportunities, ability to achieve code mandatory status for the SkyPlug, risks arising from mergers and acquisitions, and other risks and uncertainties described in the Company's filings with the Securities and Exchange Commission, including its periodic reports on Form 10-K and Form 10-Q. There is no assurance that any of the Company's products will become National Electrical Code (NEC)-code mandatory in any jurisdiction, or that any of the Company's current or future products or technologies will be adopted by any state, country, or municipality, within any specific timeframe or at all. There can be no assurance as to any of these matters. Any forward-looking statement speaks only as of the date of this press release, and the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by U.S. federal securities laws.
Media Relations Contacts:
Britney Ouzts/Barbara Goldberg
O'Connell & Goldberg, Inc.
(754) 204-7074/ (954) 294-4677
email@example.com / firstname.lastname@example.org
Investor Relations Contact:
Lucas A. Zimmerman
MZ North America
SOURCE: SKYX Platforms Corp. dba Sky Technologies
View source version on accesswire.com:
© 2023 Canjex Publishing Ltd. All rights reserved.