SKYX Platforms Corp.

Good day, and welcome to SkyX Platforms Corp First Quarter 2024 Investor Update Call. Today's webinar is being recorded. Before we begin the formal presentation, I'd like to remind everyone that statements made on the call and webcast, including those regarding future financial results and industry prospects, are forward-looking and may be subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the call. please refer to the company's SEC filings for a list of associated risks, and we would like to refer you to the company's website for more supporting industry information. At this time, I'd like to turn the webinar over to Randy Cohen, Executive Chairman of SkyX Platforms. Sir, please go ahead.

Thank you, Alicia. Thank you, everyone, for joining us to our Q1 update call, 2024. We will have today, open the call, is our president, Steve Schmidt. And we will have then our CEO, Lenny Sokolow. We'll also have our CFO, Mark Boussouet. And we're going to also have our senior smart home and AI advisor, Khadija Mustafa, former AI and business global leader for Microsoft. They joined us last year. as we got a few patents related to smart home and AI. Thank you very much for everyone joining here, and I'll pass it to Steve Schmidt. Thank you, Steve.

Ronnie, thank you very much, and my pleasure to be with you here this afternoon. You know, as we've shown you before in the past, we've got a very strong leadership team. We feel very good about both the management team, our board, from Governor Tom Ridge, former head of Homeland Security and governor of Pennsylvania, Bob Nardelli, former Home Depot CEO in Chrysler, you know, Lance Shainer representing Marriott, and Eric Jacobson has joined us from the American Lighting Association, and we've been through this. Mark Early also joined from the National Electric Code, obviously are all key executives that we rely on every single day to run the company. And then as Ronnie had just said, Khadija Mustafa is going to join us later on the call because of really the importance around AI and everything that's going on in the world and the importance it is to Sky as an overall company. As we've talked to you before, really there's two key points I want to make here. First of all, our mission really is we believe that based on everything that's happening at Sky, that we are positioned to revolutionize both the lighting and smart home industries and become a safety standard in homes and buildings in the U.S. and globally. And as we've spoken before, our products significantly do four things. We save lives, we save cost, we save time, and we simplify. And many companies have had success simply with one of these areas. And having all four of these, we believe, is foundational and really represents what makes us very special. We also talk in this chart about our patents, and we continue to grow patents. We're now over 90 U.S. and global patents and patents pending, with 30 issued patents included in the U.S., China, India, and Europe. We're currently selling our products on over 60 lighting and home decor websites, and our TAM is huge, a $50 billion U.S. addressable market. 500, I said 50, I apologize. Small difference with the zeros there between 50 and 500. And obviously, we're expecting very strong revenue streams through our royalty, licensing, subscription, monitoring, and sale of global country rights. So a lot of great things going on from a positioning standpoint. Our technologies advance key sectors. And when you think about the electrical and building safety regulators, it's really about enhancing home and building safeties. Insurance companies, huge dollar savings for insurance companies based on the safety aspect of our products. The lighting industry is going to save costs and increase sales and profits. Smart home industry, the same thing. And then the electro-outlet box manufacturers will save significant increase in sales and profits. And when you think about builders, apartment buildings, hotels, cruise industries, all of them will have significant costs and time savings while enhancing building safety. Our first quarter 2014 financial highlights. We generated record first quarter sales of 2024 sales of $19 million in revenue compared to $18.6 million for the first quarter of 2023, including sales of our advanced and smart platform plug and play products. We've reported $19.8 million in cash, cash equivalents, restricted cash, available cash, and investments available for sale as of December 31, 2023, as compared to $22.4 million as of December 31, 2023. And very importantly, management anticipates the company will become cash flow positive during 2025. So let's go through some key updates over the last six months that have occurred at Sky. First of all, New global smart home and AI-related patents enable and enhance performance of smart home and AI sensors in addition to home safety sensors. We recently received eight additional patent issuance, bringing the company's intelligent issue in the intellectual property portfolio to a total of over 90 issued and pending patents, 30 of which are issued covering Sky's advanced plug-and-play smart home platform technologies for the smart home AI electrical and lighting industries. We've got collaboration with a world-leading Chinese lighting supplier and manufacturer, Rui Appliances. This collaboration with Rui will include Sky's advanced and smart products to both professional and retail markets and provide Sky substantial backing in several areas, including financial, mass production, manufacturing capabilities, and distribution to global markets, including China and Europe. Plus, this collaboration is expected to substantially enhance gross margins on Sky's product sales. We have signed with General Electric a five-year global licensing partnership agreement to license Sky's patented advanced and smart home platform technologies, including its ceiling, outlet receptacle-related products, as well as its all-in-one smart home platform technologies. We've announced a collaboration with a world-leading lighting company, Kichler, which will include Sky's advanced smart standard products for online, retail, and professional channels. We've announced a collaboration with Kweizel, a premier U.S. lighting manufacturer, for nearly 100 years to integrate SkyX's advanced smart and standard products for online, retail, and professional channels. And finally, we've announced a collaboration with Golden Lighting, a leading provider of elegant lighting solutions in the U.S., which will again feature Sky's advanced and smart products for different channels. Enhancing market penetration to both retail and pro segments are really one of our key strategies, and let's talk about what we've done. The company continues to grow its market penetration of its advanced and smart platform technology products to both retail and commercial segments through its e-commerce platform of over 60 websites for lighting and home decor. We continue to deliver our products to thousands of homes in the U.S. and Canada and expect our products to be in tens of thousands of homes within a year. We have started sales to builders and pro segments, and we've opened up over 100 builder and pro accounts during the International Builder Show in Las Vegas. We've entered into an agreement to supply approximately 1,000 homes with advanced smart home platform technologies. and expecting to deliver approximately 30,000 units representing a variety of our advanced and smart platform technology products to the developers' upcoming projects. And as we've announced prior, we have won seven CIS awards, CES, I said CES, I apologize, including most recently two awards for our all-in-one smart home platform. And most importantly, We plan to announce significant additional partnerships and collaboration over the coming months. So when you think about really our outlet and how we think about building our business, in just the ceiling receptacles alone, we believe there's 4.2 billion applications in the U.S. and building market. There's 140 million U.S. homes. You can do the math, and that comes to 4.2 billion applications and opportunities for us. The TAM is huge, which we've already spoken about. And those 4.2 billion U.S. installs are residential only and do not include commercial properties. And we believe that's approximately the same size. So you can double that number. And global fixture installations are estimated to be several billion annually. So a significant opportunity on our core outlet receptacle. Our strategy on the core receptacle is very simple, and we call it the razor and blade model. We want to get that receptacle installed in as many locations as possible and then bring on then our phase two and phase three technology products from a plug-and-play concept. And so we're really opening up a whole new world for plug-and-play ceiling products and all of this is dealing with app and voice control and we feel very good that this really is the foundation of building what we have. Our all-in-one smart platform is really something that is our phase three And if you look on this chart, think about an all-in-one platform from the standpoint of being able to make a home or building smart almost instantly versus the way it's done today that literally takes thousands of hours and hundreds of man-hours of work to get done in buildings. And we have the ability with our product, our all-in-one platform, to plug it directly into our platform. And look at the different attributes that it's got. We have security features. We have speakers. We have Wi-Fi. We have emergency intercoms. We are compatible with Apple, Amazon, Google, Android, an intercom system, premium speakers. And so everything that you can think about from a smart enhanced standpoint are represented in our all-in-one smart platform, which will be available coming this year. Finally, if you think about really our three products, it's really three phases. You've got Gen 1, which is our plug-and-play, You then got the smart products, our smart sky plug and ceiling outlets, and then Gen 3, our smart product, sky all-in-one home ceiling platform that makes homes become smart in just minutes. And GE licensing, all three generations, we're really working with GE to really sell all three of these generations to the lighting and technology industries. Continuing here, we've already talked about the CES and the seven awards that we've achieved through our launches of our Sky products and services, and we think this really speaks volumes to the industry's recognition of how significant our products and services are. And then the products that we're offering here, you can see the plug-and-play products we've got are ready and are being sold in the marketplace today, and we're ready for distribution. One of the key subjects that we continue to talk about is the mandatory application with the National Electric Code for homes and buildings in all 50 states. And our safety mandatory filing with the NEC. And we filed for mandatory safety standardization with the NEC for our ceiling outlet receptacle for ceilings at homes and buildings with our team, which is led by Mark Early, our former head of National Electric Code, and Eric Jacobson, the former president and CEO of the American Lighting Association. Mr. Early and Mr. Jacobson are instrumental in numerous code and safety changes in both the electrical and lighting industries. And from a highlight standpoint, we believe that after over 11, 12 years of standardization processes, including product specification, approval voting, or by ANSI and NEMA, the American National Standardization Institute, and the National Electric Manufacturing Association that we have met the necessary safety conditions for becoming a ceiling safety standardization requirement for homes and buildings. And in the past 12 years, our products were voted into 10 segments in the National Electric Code book, but as we have to be straight, voting decisions are at the discretion of the NEC voting membership. When you look at filing for safety mandatory in homes and buildings. It's really this picture. Ceilings from yesterday and ceilings from today and tomorrow using our basic platform really will save lives and create safety in the marketplace, and it's the real core reason why we believe our products and services will be accepted by the National Electric Code and become a standard. We have our sky ceiling outlet receptacle. Hundreds of millions of U.S. hazards occur every year. You have ladder falls. You have electric electrocutions, from touching wires, etc., and all of these things are contributing to the safety standards for our products. And most significantly, the addition of the National Code in 40 years, we believe this will be. You all are familiar with the GFCI, and that was really the last significant change, and we believe with our products that we will be the next big change that's occurring in the National Electric Code. And really, after 120 years, changing the definition of a receptacle is really what we're talking about here, and we feel very confident that in the near future this will be achieved. And with that, I want to stop, and I'd like to introduce our CFO, Mark Basso. Mark, to you.