Form 4: SKYX Co-CEO Sokolow Reports Stock Disposition for Taxes

Sentiment:

Insider Transaction Report 12 September 2025 6:46 PM

SKYX Platforms Corp. Co-CEO Leonard J. Sokolow reported the disposition of 19,675 common shares to cover tax obligations related to restricted stock unit vesting.

Summary

Leonard J. Sokolow, Co-Chief Executive Officer and Director of SKYX Platforms Corp. (SKYX), reported a transaction on September 12, 2025.
The transaction involved the disposition of 19,675 shares of common stock at a price of $1.18 per share.
This disposition was made to satisfy tax withholding obligations in connection with the vesting of restricted stock units (RSUs).
Following this transaction, Mr. Sokolow beneficially owns 699,220 shares of common stock directly, which includes 130,000 unvested RSUs.
Mr. Sokolow also holds various derivative securities, including multiple stock options, a Subordinated Convertible Promissory Note with a principal amount of $250,000, and 10,000 shares of Series A-1 Preferred Stock.

Sentiment

Score: 5

Explanation: The filing reports a routine insider transaction for tax purposes, which is neither inherently positive nor negative for the company's operational or financial outlook. It provides transparency on executive compensation and ownership structure.

Positives

The transaction is a routine tax withholding event, not a discretionary sale, indicating it is a standard part of executive compensation.
Management's continued significant equity ownership, including common stock, RSUs, options, and convertible securities, aligns their interests with those of shareholders.

Negatives

The disposition of shares, even for tax purposes, results in a reduction of the reporting person's direct common stock ownership.
The transaction price of $1.18 per share is below the exercise prices of several stock options held by Mr. Sokolow, suggesting the current market price is lower than some historical grant values.

Future Outlook

The filing primarily details past and future vesting schedules for equity awards and the terms of existing convertible securities. It does not provide forward-looking statements regarding the company's financial performance, strategic initiatives, or operational guidance.

Industry Context

This Form 4 filing is a routine disclosure of insider stock transactions and beneficial ownership, which is common across all publicly traded companies. It does not contain information specific to broader industry trends or competitive landscape analysis.

Related Party Transactions

Leonard J. Sokolow, Co-CEO and Director, holds a Subordinated Convertible Promissory Note with a principal amount of $250,000, convertible into common stock at $3.00 per share.
Leonard J. Sokolow holds 10,000 shares of Series A-1 Preferred Stock, convertible into common stock at an adjusted conversion price of $1.20 per share.

Stakeholder Impact

Shareholders: The disposition for tax withholding is a minor, routine event. The continued significant equity holdings by a Co-CEO generally align management's interests with those of shareholders.
Employees: The filing highlights the company's use of equity compensation (RSUs and stock options) as a component of executive remuneration, which is a common practice to incentivize and retain key personnel.

Next Steps

Semi-annual installments of 50,000 options from the 450,000 option grant will continue to vest, beginning on March 12, 2024.
Annual installments of 150,000 options from the March 27, 2025 grant will vest, beginning on March 27, 2025.
Semi-annual installments of 50,000 RSUs from the 130,000 RSU grant will vest, beginning on March 12, 2026.
30,000 options and 30,000 RSUs are scheduled to vest on March 12, 2027.
The Series A-1 Preferred Stock remains subject to mandatory conversion by the issuer until October 4, 2026, upon certain specified events.
The issuer may redeem the Series A-1 Preferred Stock for cash upon certain events or at any time beginning October 4, 2027.

Key Dates

Date	Description
11/15/2015	Date exercisable for a stock option with an exercise price of $0.60.
06/30/2017	Date exercisable for a stock option with an exercise price of $3.00.
12/31/2017	Date exercisable for a stock option with an exercise price of $4.00.
12/31/2020	Date exercisable for a stock option with an exercise price of $12.00.
12/31/2021	Date exercisable for a stock option with an exercise price of $12.00.
03/31/2022	Date exercisable for a stock option with an exercise price of $12.34.
04/30/2023	Date exercisable for a stock option with an exercise price of $3.28.
09/12/2023	Vesting date for 120,000 options (part of a 450,000 option grant); grant date for 450,000 options with an exercise price of $1.58.
01/01/2024	Date from which the Subordinated Convertible Promissory Note accrues interest at a rate of 10.0% per annum.
03/12/2024	Start of six semi-annual installments of 50,000 options each, vesting from the 450,000 option grant.
03/27/2025	Grant date for 150,000 options with an exercise price of $1.26, with the first of three equal annual installments vesting.
05/16/2025	Expiration date for the Subordinated Convertible Promissory Note.
09/12/2025	Transaction date for the disposition of common stock; expiration date for a stock option with an exercise price of $0.60.
11/15/2025	Expiration date for a stock option with an exercise price of $0.60.
12/31/2025	Expiration date for a stock option with an exercise price of $12.00.
03/12/2026	Start of two semi-annual installments of 50,000 RSUs each, vesting from the 130,000 RSU grant.
10/04/2026	Date until which the Series A-1 Preferred Stock is subject to mandatory conversion by the issuer upon certain specified events.
12/31/2026	Expiration date for a stock option with an exercise price of $12.00.
03/12/2027	Vesting date for 30,000 options (from the 450,000 option grant) and 30,000 RSUs (from the 130,000 RSU grant).
04/19/2027	Expiration date for two stock options with exercise prices of $3.00 and $4.00.
10/04/2027	Date from which the issuer may redeem the Series A-1 Preferred Stock for cash.
04/05/2028	Expiration date for a stock option with an exercise price of $3.28.
09/12/2028	Expiration date for a stock option with an exercise price of $1.58.
03/27/2030	Expiration date for a stock option with an exercise price of $1.26.

Recommendation

hold

This Form 4 filing details a routine disposition of shares by a Co-CEO to cover tax obligations related to RSU vesting. It does not provide new information regarding the company's operational performance, financial health, or strategic direction that would warrant a change in investment recommendation. The transaction is a standard part of equity compensation and does not reflect a discretionary sale based on insider sentiment, thus maintaining a 'hold' recommendation.

Keywords

SKYX Platforms Corp, SKYX, Leonard Sokolow, Form 4, insider transaction, beneficial ownership, stock options, restricted stock units, convertible note, preferred stock, equity compensation

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