MIAMI – SKYX Platforms Corp. (NASDAQ: SKYX), a technology company specializing in smart real estate platform technology, announced that it has received $11 million in preferred equity investment without warrants, at a value of $2.00 per share of common stock. The investment was led by the global developer and owner of the Marriott Hotel chain, which operates more than 60 hotels.
Key insiders at SKYX have also expressed confidence in the company's prospects with large personal investments. President Steve Schmidt invested $500,000, and Co-CEOs Lenny Sokolow and John Campi each invested $250,000 in the equity round. This internal purchase is in line with the company's projections to achieve a positive cash flow situation by 2025.
SKYX reported sales of $58 million in 2023 and a record $21.4 million in sales for the second quarter of 2024. The company's total addressable market in the US is estimated at $500 billion, with more than 4.2 billion roof requests. Revenue streams are expected to come from different segments including product sales, royalties, licensing, and sales of world rights.
The company recently entered into several strategic partnerships. This includes relationships with The Home Depot (NYSE:), where SKYX products are now available in 100 stores and on the Home Depot website. Five-year worldwide license agreement with General Electric (NYSE:) / GE Licensing aims to create a global roof standard using SKYX smart technology. Other collaborations with leading lighting distributors and manufacturers, such as Ruee Appliances, Kichler, Quoizel, and EGLO, are aimed at improving sales in the US, China, European markets, as well as online and builder segments.
SKYX smart home technology has won 7 CES Awards, and its safety applications are included in 10 sections of the National Electrical Code (NEC) Book. The company has filed for a mandatory safety freeze on its ceiling outlet.
The leadership team at SKYX includes former executives from Fortune 100 companies such as Nielsen, Microsoft (NASDAQ:), Disney, GE, Home Depot, Office Depot (NASDAQ:), and Chrysler, among others.
This announcement is based on a press release from SKYX Platforms Corp. and contain forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those expressed in these statements.
In other recent news, SKYX Platforms Corp. received an $11 million investment led by Lance Shaner of the Shaner Hotel Group, aimed at supporting the company's growth goals. The company also announced the designation of its newly authorized Series A Preferred Stock and Series A-1 Preferred Stock, which may impact its capital structure. In financial matters, SKYX reported a significant increase in sales for the second quarter, which reached $21.4 million, from $15 million in the same period last year. The company also reduced its adjusted EBITDA loss to $2.1 million and net income loss to $2.7 million.
SKYX has secured a $3.5 million revolving line of credit through its subsidiary Belami, Inc., with Farmers & Merchants Bank of Central California. However, the company is currently facing delisting from Nasdaq for not complying with the exchange's minimum bid price requirement, but has been given a grace period of 180 days to come back into compliance.
Analysts from Roth/MKM started coverage on SKYX, assigning a buy rating based on the strength of the company's SkyOutlet system. The company also announced strategic partnerships with industry giants such as Home Depot and GE Licensing. These recent developments reflect SKYX's decision to expand its credit facility, which shows its confidence in its financial stability and future prospects.
InvestingPro Insights
SKYX Platforms Corp. (NASDAQ: SKYX) recently received a significant investment, reflecting investor confidence in its smart home technology. This development is accompanied by several key metrics and insights from InvestingPro.
According to InvestingPro data, SKYX has shown an impressive revenue growth, with an increase of 461% in the last twelve months from Q2 2024. This huge growth supports the reported sales figures of the company and its presence in growing markets in cooperation with supermarkets and manufacturers.
However, investors should note that SKYX is currently operating at a loss, with adjusted operating income of $33.46 million over the past twelve months. This is consistent with InvestingPro's tip indicating that the company is “quick to burn through cash.” A recent equity investment of $11 million could provide significant funding as SKYX works toward its goal of positive cash flow by 2025.
Despite these financial challenges, the market seems optimistic about the potential of SKYX. The stock has shown a strong return of 45.17% in the last three months, and 35.37% in the last week. This latest performance is reflected in another InvestingPro Tip, which notes “significant returns this past week.”
For investors considering SKYX, it is important to note that analysts expect sales growth this year, as highlighted by InvestingPro Tip. These expectations are in line with the company's growing relationship and the presence of growing products in large retail chains.
InvestingPro offers 11 additional tips for SKYX, providing comprehensive analysis for interested investors. This information can help in understanding the company's financial health, market conditions, and potential risks and opportunities.
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